PPR - Gold Breaking Out, DBA Agricultural ETF Staging a Pocket Pivot at the 50-dma
Yesterday morning we alerted you to the possiblity of a gold breakout with volume meeting the requirements of a pocket pivot volume signature, although the move itself was technically not a pocket pivot buy point. The GLD did in fact move to a higher close yesterday on a pocket pivot volume signature (emphasis on "signature") that we believe validates the breakout. GLD is trading to higher highs again today and is fast approaching its April 29th all-time closing high of 152.37 on volume that appears on track to achieve another pocket pivot volume signature. Recall that while technically GLD is too far above its 10-day and 50-day moving averages, the breakout on a pocket pivot volume signature adds weight to the 29% above-average volume breakout we saw in GLD yesterday. Today's action confirms the strength in gold.
The message of gold is that more fiat money printing, in some form or another, is going to be served up by the EMU, and like the U.S. as well.
We also note that the Powershares Agricultural Commodities ETF (DBA) is staging a pocket pivot buy point as it comes up through its 50-day moving average.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.