Be advised that all my comments are my OPINION and that OPINION is based on my long term in-house model that I dubbed LAWG 647. The prices I use in my model are week ending prices, usually Friday.BTW, trading commodities is risky and not meant for those that faint at the sight of blood.
October 5, 2020
GOLD, COFFEE REVERSES TRENDS, SILVER WARNING!
According to the LAWG647 model on Friday, October 2 both December Gold and December Coffee reversed from an uptrend to a down trend. So what does the model tell us?
December Gold is in a downtrend. It needs a close at or above $1985.90 to reverse to bullish. Both the Positive and Negative indicators are within the First Standard Deviation of the long term average. Critical potential trend reversing values are at:
October 9 at or above $2028.00
October 16 at or above $1948.80
October 23 at or above $1947.00
What to do? Will look to recommend selling rallies between $1940/$1950 pick your poison.
December Coffee is in a downtrend. It needs a close at or above $132.00 to reverse to bullish. The Negative indicator is above the First Standard Deviation of the long term average. Critical potential trend reversing values are:
October 9 At or greater than $117.90 depending on upcoming closes
October 16 At or greater than $116.44 depending on upcoming closes
October 23 At or greater than $119.80 depending on upcoming closes
What to do? Will look to recommend selling rallies between $111.00/$113.00 pick your poison.
December Silver is in uptrend. It needs a close on Friday, October 9 at or below $24.469 to reverse to bearish, as of this writing December Silver is trading at $24.28 Both the Positive and Negative indicators are within the First Standard Deviation of the long term average. Critical potential trend reversing values are at or above:
October 9 at or below $27.797
October 16 at or below $26.258
October 23 at or below $26.877
What to do? Will look to recommend selling rallies between $24.50/$25.00 pick your poison, and be mindful of relationship between Friday closes and critical trend turning values.
If you are interested in our trading ideas you can go to our websitewww.ifgfutures.comand checkoutTrades of the Week.
Lee Gaus is a founding partner of EFG Group founded in 1992 which specializes in servicing Introducing Brokers.Prior to founding EFG Group Lee Gaus, Tom Fritz and Steve Erdman all began their Commodity Futures careers with ADM. Collectively Lee, Tom and Steve have over one hundred years of experience in the industry.
International Futures Group (IFG) founded in 1994 is a sister company to EFG Groupspecializes in serving institutions, professional traders and individual investors.
We believe our experience and the development of the Model provide our clients, Introducing Brokers and individual clients a unique perspective. If commodity trading is what you do drop me a line atLee@efggrp.comor give me a call at 312-384-1166, or 1-877-304-1369. We will be glad you called and are confident so will you.