Gold Trader - Trade 21

Gold Trader: Trade 21 closed on Thursday 21st June at $1,264 for a loss of -3.5%. Gold Trader ended 2017 +12.0% and has returned -2.9% in 2018 YTD.

Gold PowerTrader Trade 21 closed on Thursday 21st June at $1,264 for a loss of -7.0%. Gold PowerTrader ended 2017 +22.3% and has returned -6.3% in 2018 YTD.

I entered Trade 21, a long position in gold, on 4th May at $1,310 having patiently waited two months for a low risk set up to occur, while gold traded in a choppy, sideways pattern over that period. That patience was rewarded, as I avoided the $70 decline in April from $1,369 to $1,300 and bought gold 3 days in to a new daily cycle. I thought there was a very good chance that gold had started a new Investor Cycle (IC) and the trade would work out very well. (New IC's happen only twice a year and are very profitable if you can invest near the low). Gold spent the next 6 weeks trading sideways again and then dropped last week, forcing me to close out the position on Thursday for a loss.

 
 

As luck would have it, gold appears to have put in a tradable low this week. It could mark the end of the current IC, which is why I placed Gold Trader Trade 22 on Friday. If we are starting a new IC, this trade will be very profitable and I don't want to miss the turn. Another clue that gold may be about it reverse is the recent strong relative performance of the gold mining stocks. Usually when gold declines, the miners, leveraged plays on the gold price, tend to drop hard. This is not the case now and I will be writing about that shortly in relation to the Active Asset Allocator strategy.

After 21 trades, Gold Trader has returned +12.9% and Gold PowerTrader has returned +9.5%.

For more information on my gold market analysis, please get in touch. You can reach me at brian@secureinvestments.ie or at 086 821 5911.