Look No Further Than Oil, The Fed, And Summer Malaise

August 20, 2015 - 4:43pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Yesterday we took profits today on our gold trade when our OCO (One Cancels the Other) order was filled.  Bought  @ 1104.50  -- Sold @ 1128 (+ $23.50 )

Today we sent out a trade alert to reenter the market on the long side

Maintain long gold @ 1153 Maintain stop just below 1132

Gold Market Forecast

Precious metals prices continued to surge today, trading dramatically higher with gold closing at 1152 on the day. As you will see from today’s show, the 1150 area is a critical area on a technical basis, both long-term as well as short-term. I would’ve liked to have seen a close above 1153-1154. However, the precious metals remained strong throughout the entire session.

A close above 1156 could signal a return to a bullish technical model because we would have traded above the 61.8% retracement of the bull rally that took gold from just about $700 per ounce to over $1900. The next few days should give us a great indication of whether this recent rally can continue and extend to higher pricing.

Trending Markets: Proper Action

Monday we issued a SELL signal in Crude Oil:

Maintain short @ 41.86

Maintain stop just above 43.61

Trending Markets Forecast

There is no doubt today’s trading activity in the U.S. equities markets were more than brutal and severe. As we said on yesterday’s report, a key level many traders look at is the 200 day moving average. We also mentioned that a break below this price point could signal a selloff and dramatically lower prices. We saw just that with the Dow Jones industrial average losing about 2% on the day closing down over 350 points below 17,000.

The real question is whether the equities markets can find some support, and recoup some of the recent losses. Although this was the third consecutive day with lower pricing, today’s move was dramatic.

Crude oil traded nominally higher on the day, to move back over $41 a barrel. We still believe that the long term indication is that we will continue to see lower pricing in the days and weeks ahead.

Sentiment Indicator: