Gold sector as represented by ARCA Gold BUGS is on a long term sell signal.
Long term signals can last for months and are more suitable for investors.
Gold sector as represented by HUI is on a short term buy signal.
Short-term signals can last for weeks and are more suitable for traders.
GDX (NYSE:GDX) – our gold stock ETF has confirmed bottoms with breakouts. The trend is up.
Our gold ETF has also confirmed bottoms with breakouts. The trend is up.
Our ratio between gold and gold stocks is on buy signal.
During an up cycle and an up trend, gold stocks always outperform gold.
The long-term chart of the ratio is now at resistance. A breakout will confirm that the multi year correction is over.
USD – on short term buy signal.
Gold and gold stocks remain firm despite a strong dollar, which is supportive for overall higher prices in the gold sector.
Summary
Long term – on sell signal.
Short term – on buy signals.
Gold sector cycle is up.
We are holding positions and staying the course.
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 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 42 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.