New Signal to Buy Gold--Existing Positions Gain Ground

Today's action was robust. Looking at the Dow, the day was lackluster, but Cotton was up 1.4%, the Russell 2000 was up .9%, Platinum was up 1%, Cocoa and Aussie were up .5%, and the Euro was up 1%. Since we were long all of these except short the Euro, our computer-generated portfolio rose in value.

I know many of you believe that the long-term direction of Gold is up. Today I got 3 computer signals to buy Gold, and one to buy Silver. The BLOG will track the best Gold signal, which has a historical record of 24 wins out of 26 trades for a winning ratio of 92%. The silver system has a record of 84 wins out of 99 trades for a winning ratio of 85%. The average number of days in the market for the silver system is 4 whereas it is 16 for the Gold system. Therefore, two comments need to be made:

1) The Gold system represents a more long-term signal
2) Our platinum system is already long; gold and silver are positively correlated to platinum, therefore, there is contagion risk here.

The ETF signals are GLD and SLV. If any of you have any recommendations in this regard, please publish a comment for the benefit of all.

If you have any questions, post a comment to the BLOG, or email me at bassanalytics@live.com.

Open Positions Symbol Entry Stop Close Profit
Long Cotton CTK10 70.34 78.40 81.84 $5,750
Long Cotton BAL 34.02 37.76 39.42 15.9%
Long Russell TFH10 611.00 637.20 677.10 $6,610
Long Russell IWM 61.66 64.06 68.07 10.4%
Long Platinum PLJ10 1534.90 1561.10 1635.00 $5,005
Long Platinum PTM 18.40 18.64 19.52 6.1%
Long Aussie ADM10 89.58 89.91 90.96 $1,380
Long Aussie FXA 90.30 90.91 91.97 1.8%
Long Cocoa CCK10 2857.00 2667.00 2848.00 -$90
Long Cocoa NIB 41.76 39.46 42.14 0.9%
Short Euro ECM10 136.78 138.38 137.64 -$1,075
Short Euro EUO 20.20 19.88 19.99 -1.0%

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Any views expressed herein are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest.

The quotes and symbols used in the BLOG are believed to be reliable, but no guarantees are made with regard to the accuracy.