Gold Trader - Trade 13

Gold Trader - Trade 13 closed on Tuesday afternoon at $1,244 for a gain of +1.0%. Gold Trader has returned +5.4% in 2017 YTD. Gold PowerTrader closed for a gain of +1.8% and has returned +9.7% in 2017 YTD.

We are at an interesting juncture with gold. I entered Trade 13, a short position in gold, on 17th May 2017 at $1,257, expecting to capture the final drop into an Intermediate Cycle Low (ICL) before the next leg of the gold bull market started. Shorting on Day 6 of gold's fourth daily cycle is usually a low risk and profitable trade as the cycle is typically left-translated (peaks early and spends the majority  of time declining). After placing the trade, gold stalled for a week, then rallied 3% to $1,298 before declining to $1,244 today. Gold is now on day 30 and due for a DCL and/or ICL shortly.

 
 

If gold bottoms in the next few days as it should, this cycle will be right-translated and gold will have made another higher high and higher low, signalling that a new Intermediate Cycle has already begun. Gold still has time to decline below the prior low at $1,214 but would need to fall for at least another 10 trading days to turn this cycle left-translated and complete the current IC. It could happen but the odds are against it, which is why I closed the trade today at $1,244 for a 1% gain.

The next trade will likely be a long position in gold once a clear set up emerges. Gold has three choices from here: 1) we could experience continued selling for another week or two as the current IC completes; 2) we could already be in a new IC and about to start DC2; or 3) gold could make a DCL shortly, rally for a week and roll over into a deeper ICL in July. 

The gold miners and spot silver prices have been quite lethargic of late, which suggests that a new IC has not yet started. However, gold has performed better and is making a pattern of higher highs and higher lows and the current DC is right-translated. Tomorrow is Day 31 for gold and a new DC is just around the corner. I plan to buy it and watch the next cycle unfold with interest.

After 13 trades, Gold Trader has returned +9.5% and Gold PowerTrader has returned +4.4%.

For more information on this exciting new strategy for Secure Investments, or to open an account, please contact Brian Delaney at 086 821 5911 or brian@secureinvestments.ie.