All That Glitters Isn’t Necessarily Gold

Over the past week, Gold and 20-year Treasury Bonds (TLT), among other assets have suited many traders looking for protection. With political tensions rising, these two assets have appreciated.

20 Year Treasury – TLT

TLT cleared 126.00 yesterday on above average volume. The past two days continue to show demand. My guess is we test 128.00 over the next couple of weeks, maybe sooner.

TLT-08-11-2017

Gold Equals Safety

Most of the time Gold trades inverse to the USD. As the dollar moves lower it logically takes more of those dollars o buy the same basket of gold. However, when political tensions rise or news events warrant protection, many investors seek the safety of Gold.

The End of Day chart of $GOLD shows a potential triple top. My guess is we could stay in this range (1204 low to 1298 high) unless political tensions escalate.

GOLD

With futures rising, and many stocks being bought at a discount in pre-market trading, we could see more short covering. FANG stocks are in play, and Apple is bouncing at a previous breakout zone (PBBO).

As a reminder, I will leave early today. My family will be arriving at JFK airport around 3:50 PM, so my departure at 2:00 PM will be necessary.

We’ll be LIVE at 9:15 AM.

Happy Fry-Day,

Vinny



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Vinny Gambini

Trade Fundamentals w/ Technical Analysis - CANSLIM method using high probability setups and Ichimoku Trend Analysis. Architect, Family Man and Father of three.