Gold Trader - Trade 16

Gold Trader - Trade 16 closed on Tuesday evening at $1,340 for a gain of +6.3%. Gold Trader has returned +9.9% in 2017 YTD. Gold PowerTrader closed for a gain of +11.2% and has returned +17.5% in 2017 YTD.

Gold Trader caught a large part of the recent rally in precious metals and I expect as the bull market in gold returns, we will have many more of these kinds of profitable trades. I entered Trade 16, a long position in gold, on 26th July 2017 at $1,261, looking to capture gold's breakout and start of DC2. I outlined my thoughts on Gold in the August 2017 Investor Letter, summarised below:

Gold is setting up for a big move, so let me lay out my expectations for what I believe will happen over the remainder of 2017 and beyond. Gold’s first task is to break above $1,300, which I expect will happen in August or September. A break above $1,300 would be significant for a number of reasons. Gold made a series of higher lows in 2017 since the washout decline to $1,124 in December 2016. Gold trading above $1,300 adds support to the view that the bear market in precious metals (2011-2016) has ended and a new bull market has begun confirmed by a rising trend in the gold price.

A break above $1,300 would also be significant as it would confirm a break out of the longer-term triangle consolidation that has been in place since gold topped at $1,923 in 2011. Once we get a good close above $1,300, I expect a sharp run higher towards $1,400 or $1,500 before the next consolidation. $1,500 represented strong support in 2011 and 2012 before it gave way in 2013, so I expect gold will take some time to get back above that level. After $1,500, I expect gold will challenge and ultimately exceed the all time highs above $1,900, probably in 2019. Once gold clears $1,900, I believe the bubble phase in precious metals will begin and gold will have a monster move higher in an epic bull market that will be a sight to behold..... but let’s not get ahead of ourselves. $1,300 in August/September, $1,400-$1,500 by year-end and $1,900 in 2019, which is 50% above today’s gold price.
— Brian Delaney, Secure Investments (August 2017 Investor Letter)
 
 

Gold is stretched and overbought in the short-term and on Day 20 of DC2 so I am expecting a consolidation and/or brief correction shortly. Gold Trader will be looking for another long entry at the next daily cycle low to capture the beginning of DC3.

After 16 trades, Gold Trader has returned +14.1% and Gold PowerTrader has returned +11.8%.

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.