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Bullish & Bearish positions are based on Trend. Trend is determined by proprietary, non-discretionary trend indicators. The following analysis attempts to forecast what we can expect over the coming weeks and months. Analysis, by its very nature, is subjective. Buy and sell decisions are not based on this analysis, but on the current trend. Over time, trading trends is where profits are greatest. This strategy uses the Rydex Precious Metals Fund (RYPMX).
Rydex Precious Metals Fund (RYPMX)
Chart Analysis
Last week we wrote:
"Both gold stocks and gold bullion moved a bit higher this week, the third week in a row. But the sector remains near its lows. Until we have a clear trend change to the upside, we will remain in cash."
This week:
Gold stocks closed fractionally lower this week, after three weeks of relatively small gains.
We do not see any strength in this sector and we are looking for another leg down.
We remind subscribers: this is a risky strategy! The gold sector is
fraught
with danger and we recommend no more than a 5-10% position for even very aggressive traders. Rallies can result in large gains, but declines can be fast and steep.
We mention again, as we have many times before, gold and gold stocks are volatile. Keep a limit on funds in gold strategies. We have always recommended 5% to 10% as a "maximum" amount.
We use the Rydex Precious Metals Fund as our proxy
for gold stocks in this report.
The Gold Timer is in a BEARISH and in a CASH (money market funds) position.
Rydex Precious Metals Fund - RYPMX
Weekly Chart
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BEARISH:
