GLD Watch

Gold does not glitter for me. Nor does its avatar, the SPDR Gold Trust exchange-traded fund (GLD), which is trading nearly 2% above Friday's close with a switch to bull phase on the macd for the first time since May 18.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
GLD $121.37

At 2:15 p.m. Eastern

One problem I have with gold is that at this historically high level, I have a hard time believing in a further rise. The current price is three times what it was in 2005.

A second problem is that I simply don't believe in gold as a store of value. It's an historical artifact. Unlike oil, for example, it lacks practical use. I mean, oil powers the economy of the world. Gold powers marriages in India and crazed libertarians like Rand Paul and Alan Greenspan in America.

Gold is basically a Tinkerbell commodity: The price goes up because people believe it will go up. If they stop believing, the price will go down, and Tinkerbell will die.

So, that's me. It's a personal aversion.

The macd push above the zero line is moderately OK, up to more than 0.017 above zero. The phase switch is accompanied by fresh bull phase on Person's Proprietary Signal, after a two-day sojourn into bearishness. The parabolic sar has been in bull phase for five days.

The price today broke out of the very near-term range, with an intraday footprint of 2.4% up. Also, today's opening was at the 20-day simple moving average, and the price moved up from there. That's also a bull sign.

Reversal Levels

• $122.24, +0.7% (swing high)
• $121.50, +0.1% (today's high so far)
• $121.37 <== You are here.
• $117.05, -3.6%
• $114.51, -5.7%

The current price is less than 1% from the all-time high, and a break past that level may be a challenge.

---

The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.

---

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

New to Private Trader? Check out the Reader's Guide.

New to private trading? Here's a look at How to Become a Private Trader. Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.