by George Dorgan
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Shorting Gold on February 19,holding till mid-marchAlthough it is not a featured trade in the Commodity Trader’s Almanac 2013, shorting gold on or about February 19 and holding until mid-March is a trade setup that is included in our Commodity Seasonality: Top Percentage Plays on pages 124-127. This short trade has a historical success rate of 63.2% since 1975 before this year’s likely successful trade is counted. |
 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
| As can be seen in the second chart above, gold has enjoyed a period of seasonal strength since 2001 that begins toward the end of March and lasts until late May (yellow shaded box). Last year this trade did not work. However, it has worked in nine of the last twelve for a theoretical cumulative single contract gain of $43,630. In the chart of SPDR Gold (GLD) above, relative strength is improving and MACD and stochastic indicators have recently issued confirming buy signals. Today’s Cyprus news is also benefiting gold and other safe haven assets. |
 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
Weakness and strength points for goldThe following 5 year to 30 year seasonal studies show weakness points of gold:
Strength points are:
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 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
 Gold came under pressure in early February when stock market strength but also U.S. gas prices rose. US purchases, however, help to improve foreign economies and therefore also the gold price. - Click to enlarge |
By Christopher Mistal (Original source)
The following entry by signal financial group:
