Gold, on a long term Buy signal, trading way above most everything else, including the wild casino biotech stocks (virus), seems to be totally ignored, at least by the mass media, and by most people that we talk with. .. this is very Bullish.
Using our long term trend investing model of 20% annualized rate of growth , in the stock chart below, the stock is trading above the 50 day 20% annualized, and the stock is trading above the 200 day 20% annualized, and the 50 day is above the 200 (the bottom panel). This is very Bullish momentum. Most everything else doesn’t even come close. Most of the podcasts and video posts talking about gold, yammer on and on about fundamentals, which is faulty at best, none of that is necessary. It might be entertaining, if you have the time.
The Dow Jones 30 Index (DJIA), has rallied up to a major Price Reversal area, S/R (support and resistance) at $24,668 to $24,722, as displayed in the stock chart below. The price action here is a Reaction High, and resulting in selling. The index is not trading above the long term benchmark, of, at least a 20% annualized rate of growth over a 200 day moving average. Several other Indexes are at benchmark, such as Gold (GC) and The Gold Miners Index (GDM) and The Nasdaq 100 Index (NDX), as of today.
This is pure Trend Investing, using price action only, no fundamentals, and no predictions.
The Dow Jones 30 Index (DJIA), today is trading at major S/R (support and resistance). The S/R level is $24,668, as displayed in the stock chart below. We will look to see if this level holds. The index is not trading above the long term benchmark, of, at least a 20% annualized rate of growth over a 200 day moving average. Several other Indexes are at benchmark, such as Gold Miners Index (GDM) and The Nasdaq 100 Index (NDX).
The Gold Miners Index (GDM), trading in excess of our trend filter of at least a 20% annualized growth over a 200 day average, has broken out over long term resistance of $886.00. Next, we will to see the index stick for at least a week, or longer.
The Dow 30 Industrials Index (DJI) closed today at $18,582 We have the next major price support level at $15,382. This represents approximately 53% of the Dow from the High of $29,568.57 back in February.
As the ongoing global financial markets continue to sell off, we can see, in the bottom panel of the stockchart below, that the relative strength of gold ETF (GLD) is way stronger than the S&P 500 Index ETF (SPY), over a 63 trading day average. On an absolute basis, gold is down Month over Month, but today it is beginning to rally. Next, we’ll look for higher weekly closing highs.