Gold: interesting patterns

Gold (ETF:GLD) is at an interesting juncture (click on graph to enlarge). GLD is close to the important resistance level of 100.

What is even more interesting is that volume has soared as GLD spiked higher. This is a bearish pattern because it suggests distribution has been taking place.

A bullish pattern, signaling a bottom, occurs when GLD declines and volume soars, suggesting capitulation and accumulation by strong hands (as it happened in September-October).

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

George Dagnino, PhD