It’s 3 a.m. EST and gold is up over $14 in Asian trade, changing hands as I pen this column at roughly $1,148.
I like the action. First, as noted last week, gold held an important daily sell signal. And now, gold is trading above a buy signal at the $1,135.50 level.
That too is a minor buy signal, but bouncing off a sell signal and moving above the nearest buy signal is a very positive sign. It looks like the AI forecast should now be kicking in.
The next important resistance level and buy signal is $1,167.90. If gold can get above that on a daily closing basis, it should then be off to the races, with a potential rally to the $1,220 level.
I will not add to the portfolio at this time. However, if gold can close above $1,167.90 – I expect to add to the UGL position. Maintain your good-till-canceled protective sell stop at $31.39.
Meanwhile, crude oil is looking very toppy, so I recommend holding the inverse ETF, SCO with a good-till-canceled protective sell stop at $58.73.
Also, hold DXD and TMF. I am monitoring the stop for DXD, and for TMF you should have a good-till-canceled protective sell stop in the market at $14.70.
The markets are still pretty much in holiday mode, with New Year’s right around the corner. So don’t expect much action. I am pleased, however, that gold is finally showing some life.
Stay tuned!
Best wishes, as always …
Larry
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