Gold Signals and Backwardation!
Has Trading the Triangles at MarketClub given any buy or sell signals regarding gold or the USD?
First, we would have been short on the weekly signal on 10/16 at $817 and $860 on 10/10 on the daily chart and would have covered and gone long on 11/21 at $777.9 on the weekly chart and $749.9 on 10/28 on the daily chart. Right now, we should be long Gold and the ST target is $860.
How about silver? Silver’s last signal was a weekly sell on 10/13 at $10.55. The last daily signal was a sell on 11/20 at $9.20. Silver needs to move above $9.77, the last daily high.
How about the etfs?
GLD no monthly buy signal. The weekly gave a buy signal on 11/21 at $76.36.
SLV no monthly buy signal. The weekly has not given a buy signal.
How about NEM - the largest independent gold mining company?
NEM no monthly buy signal. The weekly gave a buy signal on 11/21 at $29.4.
How about CDE - the largest independent silver mining company?
CDE no monthly buy signal. The weekly has not given a buy signal.
Both Gold and Silver are in backwardation. This is the first time for this since 1999. Antel E. Fekete wrote an excellent description of what backwardation means in a piece for FSO titled WHAT GOLD AND SILVER ANALYSTS OVERLOOK
As the regime of irredeemable currency threatens to crumble under the weight of the inordinate debt tower of Babel, people increasingly take flight to gold. Supplies will get tight and the gold basis will fall. The gold futures market may even go to backwardation briefly at the triple-witching hour, i.e., the hour when gold futures, as well as call and put options on them expire together. Later, flirtation with backwardation may occur even more often, at the end of every month when gold futures expire. Gold will get caught up in a storm.
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