There has been a lot of improvement in breadth (as measured b y Summation and McClellan)
Notice that McClellan downtrend is broken, Summation has turned positive, and Buy/Sell pressure has turned to the BUY side
There has been improvement in structure (as measure by proprietary MAI and OEW indicators)
But notice that, first Weekly MAI is still downtrending and Daily MAI is at neutral while price is hitting resistance based on 2010 breakout line
Meanwhile, GLD has hit some resistance based on 2011 breakout line
I am of the view that the recent low in Gold was a short-term, mid-term, and yearly cycle low ((all coinciding)). I am also of the view is that gold is currently within a timing band for a short-term cycle low. It is important that the recent low of Gold is not violated by the next short-term cycle low.
That would keep the cycle structure right-translated which is required for a positive price environment for the PM-related issues including GDX
———————————————————
Investing in the financial markets can involve considerable risk. Past performance is not necessarily an indication of future performance. All information included in Market Time Premium reflects ongoing thoughts of Market Time authors about market-related issues, and is prepared for educational purposes, and is presented as authors’ observations, and is not a solicitation, or an offer to buy or sell any security or use any particular system. Information is based on historical research using data believed to be reliable, but there is no guarantee as to its accuracy. Market Time Premium, its author(s), and its affiliates do not represent themselves as acting in the position of an investment adviser or investment manager. Market Time Premium, its author(s), and its affiliates shall not provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio or securities, transaction, investment strategy or other matter. From time to time, Market Time Premium, its author(s), and its affiliates may hold positions in securities mentioned, but are under no obligation to either divulge or hold such positions.
Posts
