​Long Trade Ideas for SPDR Gold Shares ETF

MoneyShow |

As long as GLD trades above $121.50, then new long trade ideas can be initiated on declines to $123.64, or lower. Depending on how much room you want to give this trade idea, use a risk price between $122.23 and $121.50, writes Landon Whaley of Focus Market Trader.

The SPDR Gold Shares ETF (GLD) declined 1.3% in the week ending February 9 and has gained 0.91% to start 2018.

The Gravities

GLD’s Fundamental Gravity is being primarily driven by the latest Fed rate hike, which is bullish.

The Quantitative Gravity is giving us mixed signals right now.

Social, our proprietary trend indicator, is signaling GLD is in take a breather mode after starting 2018 partying.

Barometric, a measure of buying pressure, is bouncing off the lowest levels in twelve months, heading higher.

And finally, rounding out the trifecta of quantitative components, is Momo, our measure of force behind the current trend. Like Barometric, Momo is also bouncing off lows and making its way higher.

Behaviorally, investors have yanked $427MM from GLD during 2018, which means investors have yanked over $500MM in just the last five trading days. In gold futures, institutional investors are leaning slightly long, but are extremely underweight compared to their average positioning over the last twelve months.

The Bottom Line

GLD’s Fundamental Gravity is bullish, the Quantitative Gravity is neutral, and the Behavioral Gravity is bullish, because of retail investors are turning bearish and institutional investors aren’t bullish enough.

When the three Gravities stack up this way, we hold a long bias and pay careful attention to further deterioration in the Quantitative Gravity.

The Trade Idea

As long as GLD trades above $121.50, then new long trade ideas can be initiated on declines to $123.64, or lower.

Depending on how much room you want to give this trade idea, use a risk price between $122.23 and $121.50. If GLD touches your risk price, even for a second, then you should exit any open trades.

If the trade moves in your favor, then you could consider using the price range between $129.61 and $131.15 as your profit target.

Landon Whaley is editor of Focus Market Trader.

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About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
GLD SPDR Gold Trust 124.87 0.27 0.22 4,335,420


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