• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

Charts and Commentary

Today, we will look at the gold market again and show you a simple technique that could have generated a 26% gain on the GLD ETF since last November.

First, gold is an unusual investment. It is bought on fear, inflation concerns, and greed when trending strongly. This is a commodity where you can get greed super up moves, and reversal panic sells. While the long term trend is up for gold, on the short term it will swing to extremes. Today, we will show you a simply technique to catch the "swings" in gold in a profitable way.

While yesterday's chart showed gold's long term bull action, the short term was overbought with an extreme RSI. This exposed gold to a short term reversal at any time. Using today's technique, you would still have been up 10.59% at the close on yesterday with the GLD (Gold ETF).

Here is the simple technique ...
Construct a Gold (ETF GLD) chart using the following:
1. The price chart with an Exponential Moving Average of 3 and 6.
2. Add a Stochastic set at 13-5-5.
3. Add a Relative Strength of 14.

When the Exponential Moving Averages have a Red/Blue cross over to the upside, AND the Stochastic confirms it with a cross over, then go long. The RSI should also be moving up at that point.

Hold that position until you get a cross over of the Red/Blue Exponential Moving Averages to the downside with a Stochastic downside cross over, OR an overbought peak on the RSI and then sell. (When not at a peak, draw a trend line on the RSI, and if it breaks support, it will often give you an early warning of a down reversal just before the Exponential Moving Average and Stochastic turns down.)

Although this is a simple technique, using it since November on Gold would have given you 4 buy and sells. The Buy/Sells would have produced: +8.1%, +7.8%, -0.49%, and +10.59% for a total of 26%.

There are different techniques for sideways trading markets, and those that are short term volatile. For a strong up trending, bullish item like gold, this technique works well until it goes into a trading range.

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages. I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information.

Do you have a friend or fellow investor that you think would appreciate receiving a link to the above Charts and Analysis today? If so, simply click on the following link to easily and quickly forward an email link. Send this Page To a Friend Link

 

Back to homepage

Leave a comment

Leave a comment