Intel Corporation (INTC), Microsoft Corporation (MSFT) & Google Inc (GOOG): Move On Gold’s Buy Signal If This Happens

Gold Gives A Buy Signal
SPDR Gold Trust (ETF) (NYSEARCA:GLD) added 0.8% last week after jumping 5.1% the week before. Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) gained 3.3% as speculators returned to the market. Market Vectors Gold Miners ETF (NYSEARCA:GDX) did even better, gaining 6.1%.

The Traders Dynamic Index (TDI) signaled a buy in Market Vectors Gold Miners ETF (NYSEARCA:GDX) at the end of last week.

TDI combines the Relative Strength Index (RSI) and Bollinger bands. A buy signal is given when RSI crosses above the midpoint of the Bollinger bands. In the past, GDX has gained an average of 1.9% after this signal. This trade has only been a winner 56% of the time, but the gains have been significant. For comparison, in an average two-week period, Market Vectors Gold Miners ETF (NYSEARCA:GDX) has gained only 0.1%.

Action to Take –> One way to trade this signal would be to buy only if Market Vectors Gold Miners ETF (NYSEARCA:GDX) confirms its strength and trades at a price above last week’s high ($25.99). That entry improves the percentage of winning trades slightly, to 58.8%, and the average gain increases to 3.2%.

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This article was originally written by Michael J. Carr and posted on StreetAuthority.