GOLDBUGS AMEX Goldbugs Index (GOLD)

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An Update On Gold
By Greg Schnell

* January 7, 2017

Gold traded fabulously last year. Actually Gold surged from January to March then went sideways. Well Gold has started to outperform the $SPX but everything else looks dismal. The SCTR is stuck at 2% even after Gold surged. The volume has started to improve, but it is still a lot less than the selling volume through November and December.



I wrote about Gold back on December 2nd and explained why we might have some positive price action show up in December. That article can be accessed here. Is There A Holiday Present For Gold Investors?



So Gold is trying to rally here but new investors need to be cautious here to make sure the breakout continues. Here's why. We do have a buy signal on the $BPGDM chart. This is the percentage of Gold Miners on a buy signal based on PnF charts. Above the 50 DMA is a pretty good signal. Below the 50 DMA is a pretty good sell signal. However, we can see the big downtrend in 2013,2014 and 2015 all showed this indicator toping out around 45% to 50%. This is an important place to see if we get enought breadth to really start the big run in Gold and Gold Miners.



Good trading,
Greg Schnell, CMT, MFTA

http://stockcharts.com/articles/chartwatchers/2017/01/an-update-on-gold.html

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