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One of the more noteworthy developments in recent days has been the move in gold.  The metal jumped nearly one percent on Monday on geopolitical risks in its biggest one-day percentage gain since late September.  As such, the SPDR Gold Shares (GLD) rose 0.85 percent to 121.65.  Nevertheless, the ETF underperformed the broader market, up about 10 percent YTD while the S&P gained nearly 16 percent over the same period.  Now the question is whether Monday rally has more legs?  Below is an update look at a trade in GLD.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red.  The yellow bars identify period of neutral or sideways trading pattern.  Additionally, the light-blue shading represents the short-term trading range.  A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading).  Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.

Chart 1.2 – SPDR Gold Shares (daily)

Our “U.S. Market Trading Map” painted GLD bar in green (buy).  After a strong run of outperformance since early July, GLD peaked in early September at 128.30 and rolled over.   The September correction found support near the 200-day moving average.  Monday’s massive reversal pushed the ETF above the 20-day moving average.  That level was significant…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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