Gold Price Exclusive Update

May 11, 2019

Our proprietary cycle indicator is down.

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 major buy signal.

GLD is on short-term buy signal.

GDX is on short-term sell signal.

XGD.to is on short-term sell signal.

GDXJ is on short-term sell signal.

Analysis

COT data is supportive for overall higher gold prices.

The decline appears to be corrective.

The big picture remains the same as the multi year bottoming pattern continues.

The breakout earlier this year remains in play.

USD is on sell signal.

The big picture in the dollar has become clear these past few weeks, as an ending diagonal is taking shape, which when broken, a new down leg will begin.

Summary

Long-term – on major buy signal.

Short-term – on mixed signals, correction is in progress and may be ending.

Gold sector cycle is down.

COT data is favorable for overall higher metal prices.

Maintain positions and stay the course for now.

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.

We also provide coverage to the major indexes and oil sector.

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Jack Chan is the editor of simply profits at www.simplyprofits.org, 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.

The term “carat” comes from “carob seed,” which was standard for weighing small quantities in the Middle East.