Gold Price Exclusive Update

Technical Analyst & Editor
October 1, 2022

Our proprietary cycle indicator is down, but bottoming.

To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.

Gold sector is on long term SELL signal.

GLD is on short term sell signal.

GDX is on short term buy signal.

XGD.to is on short term buy signal.

GDXJ is on short term buy signal.

Analysis

Speculation at a multi year and bull market low.

Speculation at a multi year and bull market low.

Our ratio is on a new buy signal.

Trend is up for USD.

Trend is down for gold stocks.

Trend is down for gold.

Two observations here:

#1 – GDX has dropped 50% from the 2020 top ($44 to $22).

#2 – BPGOLD is now below 10%, and in all three previous instances when BP was below 10%, prices recovered nicely.

Summary

Long term – on SELL signal.

Short term – on mixed signals.

Gold sector cycle is down but bottoming.

$$$ We are holding trading positions.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.

********

Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.


78 percent of the yearly gold supply--is made into jewelry.
Gold IRA eBook

Gold Eagle twitter                Like Gold Eagle on Facebook