Gold Price Exclusive Update Shows Sector Cycle Is Plummeting

Our proprietary cycle indicator is now 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 remains on long-term buy at month end.

GLD is on short-term sell signal.

GDX is on short-term sell signal.

XGD.to is on short-term sell signal.

GDXJ is on short-term sell signal.

Analysis

Our ratio is back on sell signal this week.

Long-term is bullish.

The five wave structure may have completed this week. If so, a multi week correction is in progress.

GDX pulled back sharply this week, resistance remains at $30.

Summary

Long-term – on major buy signal.

Short-term – on sell signals.

Gold sector cycle is down.

We are holding long-term positions, and may add to positions upon the cycle bottoming.

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.