Gold Futures 1/11/12

It looks like our change in stance from hold short to flat was good timing.  We have no way of knowing if the larger downtrend is complete yet, but the intermediate term trend has turned back up by several measures. 

  
Weekly gold futures prices still remain below trend-line, and within down-trending parallel lines based off current pattern high and low.  Prices are currently testing the upper parallel line.

Daily gold futures have pushed above down-trending parallel trend lines.

Moving average envelopes are still in downtrend mode on the longer term weekly chart, but have moved into uptrend mode on the intermediate term daily chart.  


RSI remains in downtrend territory on both charts.  A positive divergence on the daily chart preceded the recent rally.   

The Dynamic Trailing Stop exit indicator is holding onto downtrend mode on the weekly chart.  Daily DTS is tracking the current intermediate term rally to the upside.  


ADX registers non-trending behavior on both time frames.  


Current Stance
Long Term: Flat

Intermediate Term: Flat

Definitions: 
Flat = no position / not long or short the market. 
Sell Short = positioned to attempt to make money on price declines
Buy / Long = positioned to make money on price advances
Hold = hold a long position
Hold Short = Hold a short position     


"Market Manipulation" Is Not Why Most Traders Lose 

A look at EWI president Robert Prechter's requirements for successful trading
By Elliott Wave International

How often have you heard analysts refer to a down day on Wall Street as "traders taking profits"? Sounds great, but the sobering fact is that most traders -- in futures, commodities, or forex -- lose money. Yet some traders do win; some even set records. In 1984, Elliott Wave International's president Robert Prechter won the U.S. Trading Championship, setting a new all-time profit record of 444.4% in a monitored real-money options account. Here is a link to the free report where he lays out his requirements for successful trading. Read More.