(Originally published on November 12, 2016 at goldtradingmastery.wordpress.com)
Since Trump was elected, the gold-price of the U.S. dollar has continued to climb.
The last time the dollar was in an uptrend, it ended up being a fake out. We’ll have to wait and see how long this one lasts.
Over the course of the next week or two, if the price bounces off the 10-day EMA and continues higher, we will wait for a pullback and then consider buying.
Now here’s what has happened to the S & P 500.
Just like the dollar, stocks are in a young uptrend. It remains to be seen whether this trend will mature and become trade-able. We will be keeping an eye on this.
It’s also interesting to see what’s happened to the gold-price of the U.S. long bond over the past six months.
It’s clearly undervalued relative to the 100 and 200 day EMAs, and it looks like it’s getting ready to head back up.
Here’s a closer look, with the 10 and 21 day EMA instead of the 100 and 200.
It’s still in a short-term downtrend. So now isn’t the best time to buy. But it may be looking to reverse soon.
Now here is the Van Eck Vectors Gold Miners ETF. I described a possible trade with this a couple of weeks ago, but it hasn’t turned out the way I planned.
The stop-loss for this trade has now been triggered with a 3.25% loss.
See you next week.