A Market Timing Report based on the 2-07-2014 Close published Sunday February 9th, 2014
The yellow trend resistance line on the GLD chart I pointed out last Sunday was finally broken to the upside, but the top aqua resistance line must still be conquered by the gold Bulls.
Here’s the GLD chart:
NOTE: Breakout number is 122.51 not 122.50.
As the chart below shows, the all important 10 Year Treasury Note yield (TNX, TLT) is rising a bit again. As you can see, gold does not always inversely correlate with the yield chart, but it has since October, move by move. If the yield keeps rising, this could prevent a breakout in gold above the aqua line in the 1st chart. I would check the interest rate chart before buying a gold breakout and if it’s moving WITH rather than AGAINST gold, watch your stops and make them tight or you may decide to wait a bit! In other words, we want gold to go UP and interest rates to head DOWN, or to understand why the correlation has changed from the latest one, which is an INVERSE correlation.
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Look for updates on the main chart tracking pages this week as I feel they are needed and comments via Twitter.
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