Amex Gold Bugs Index, representing un-hedged gold stocks, followed through below 480, after breaking primary support at 500, confirming a primary down-trend. Peaks below the zero line on 63-day Twiggs Momentum also signal a primary down-trend. The Gold Bugs index often acts as a leading indicator of trend changes in spot gold prices. Expect further weakness in the yellow metal; breach of support at $1500/ounce would confirm a primary down-trend.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.