A Market Timing Report based on the 4-25-2014 Close published Sunday April 27, 2014
Gold bounced from critical support this week after testing below it. This often happens with any financial instrument, including stocks. Stocks will often test just below a support level, though typically intraday and not on a close, but sometimes the test is below support on a close. If you set your stops too close to these levels you will often sell at just the wrong time.
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GLD chart:
Gold Survives at Support
Meanwhile, interest rates continue to cooperate with Fed Chair Janet Yellen. Some claim it’s due to the soft economy with increasing expectations of the need for the Fed to slow down their easing of QE. The housing market has been somewhat soft after rising in price by over 12% year over year. And other blame the Ukrainian crisis and the flight to the U.S. dollar that often occurs during states of panic or semi-panic.
The effect of these lower rates is to support the metals rally. Gold is still a buy with a stop beneath obvious support. As mentioned, don’t place your stop too close to that support just in case it is back-tested one more time (and if that’s not your style and you disagree, use a tight stop! “It’s your money..” as I like to say.).
Ten Year Treasury Note Yield Chart (TNX, TLT, TBT):
Rates fell back from a lower high.
Standard Disclaimer: It’s your money and your decision as to how to invest it.
I thank Worden Brothers for the chart system I use to post these charts. If you want to know more about the charting system I use every day, go to my “Other Resources” page here: Other Resources It makes it much easier to follow along with me if you can see the charts and manipulate them on your own computer, so it’s a great investment to have an excellent charting system.
Look for updates on the main chart tracking pages this week as I feel they are needed and comments via Twitter @SunAndStormInv (see link to upper right).
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