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.
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