The death of hope enables freedom to be responsible for your own actions. Hope is merely the flip side of denial. Be prepared or blame the gods for your misery.
Yesterday we posted an article noting the Trump Trade’s birth was responsible in part for the 2016 EOY swoon. We also noted that the tax bill was a likely reignition of that trump trade and warned that gold could succumb to it. We also noted that of yet “gold was hanging tough”. Trump Trade in stocks and Gold (post tax bill momentum on right). Charts here
Stocks - Election - Tax - Bill - Process
Stocks post election and during the tax bill process:https://www.marketslant.com/core/assets/vendor/ckeditor/plugins/widget/i..
Gold - Periods - Yesterday
Gold during the same periods before yesterday:https://www.marketslant.com/core/assets/vendor/ckeditor/plugins/widget/i..
Yesterday - Markets - Tax - Bill - Ratification
Yesterday killed that potentially. Markets seemed to discount even more the Tax Bill ratification.
Our prescience is not a happy event as far as our macro position goes, but it does make all the more real our story last week called “Gold is on a Bear Trend with a $1700 Target”
Things - Radar - Tax - Bill - Decision
So here we are and new things are now on our radar.Blame the Tax bill if you like. But an actionable decision will be upon gold traders/ investors soon.
Here’s where we stand now:
Interest - Gold - Time - Conditions - Decision
If you have interest in either buying gold or selling what you have the time is now to prepare for the conditions that will trigger your decision to buy, add, sell, or short Gold. We have been saying that the macro buy signal put us into a long position. We have also said repeatedly we are swing-trading from the short side looking to reassess what action to take should certain levels be penetrated on the downside or upside.
Those levels are dynamic but center on the following areas:
Month - Chart
This got us long last month. Chart here https://www.marketslant.com/core/assets/vendor/ckeditor/plugins/widget/i..
VBS- - Momentum - Signal - Term
2- VBS- our proprietary momentum signal used primarily for short term and...
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