HUI
The gold sector as represented by ARCA Gold BUGS ($HUI) is on a long term buy signal.
Long term signals can last for months and are more suitable for investors.
Gold
COT data on gold is favorable for overall higher prices
Silver
COT data on silver is also favorable for overall higher prices.
GLD
The current decline of SPDR® Gold Shares (NYSE:GLD) 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
USD had an outside reversal on Friday, and if there is follow-through selling next week, the buy signal will end.
The bigger picture on the dollar has become clear these past few weeks as an ending diagonal is near completion.
Summary
- Long term – on buy signal.
- Short term – on sell 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.
Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Jack bought his first mining stock, Hoko exploration in 1979, and has been active in the markets for the past 40 years. Technical analysis has helped him filtering out the noise and focusing 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.
In his spare time, Jack is an avid golfer and tennis player, and volunteers his time coaching and lecturing at local clubs and universities.