Gold Sits Fed Dance Out For The Day As Equities Pop

June 6, 2016 - 5:21pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

 

This morning we sent out a special trade alert recommending that subscribers initiate a long position in gold.

Maintain your current long position at 1245

Maintain your current stop below 1220

Gold Market Forecast

 

Friday's superlative upside move that sent gold prices more than $30 higher was not followed by any corrective action today.

Instead what we saw was a market consolidating, moving slightly higher even in light of Friday's strong move. There can be no doubt that the support area at 1208 held. It is also noteworthy that the move above 1244 (which is a 23% retracement) also held.

These facts were part of the overall analysis that compelled us to initiate a long position in gold today. On today's report we will not only look at the thought process behind initiating a long position but more importantly our upside target or exit strategy should gold continue to track higher.

Trending Markets: Proper Action

 

This morning we sent out a special trade alert recommending that our subscribers go long the Standard & Poor's 500 vis-à-vis the E-mini.

Maintain your current long S&P 500 position at 2110

Maintain your current stop just below 2080

Trending Markets Forecast

 

Over the last week we have seen US equities once again flirt with their yearly highs only to close just off of that mark. The same cannot be said for Friday's action, as a strong close moved equities back into that price area that was only achieved at one other point this year.

We have been on record looking for a proper placement to initiate a long position in the Standard & Poor's 500. And the two places that we believed would be a logical point of entry would either be on a dip possibly as low as 2080 (which we never saw materialize), or to buy the breakout if the Standard & Poor's traded above 2100.

Today's market move that took the Dow Jones industrial average over 100 points higher also moved the Standard & Poor's 500 above 2100, and that in fact is what initiated our buy signal. Over this next week we will explore our upside target and exit strategy.

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