Attached is the gold chart on continuous futures contracts (attachment 1). As can be seen the MACD, which hasn't been as high since September 2016 is turning down. The Point&Figure chart (attachment 2) shows that the gold rally stopped exactly at the resistance level around US$ 1,210 per ounce.
Attachment 3 is the HUI (Gold Bugs Index), which reflects a portfolio of gold stocks. As per Gold Barometers, which we published on Monday, gold stocks were 100% overbought. Here also the MACD is turning down.
To protect your gold shares holding you might buy DUST (US$) 34.82 Direxion Daily Gold Miners Index (3X bear). This is a highly leveraged vehicle and extremely volatile. If the share price of gold stocks are going down, the price of DUST is rising. As attachment 4 reveals DUST reached a top in December 2016 at around US$ 70 per share and declined to around US$ 30 a few days ago as gold stock were rallying. The MACD is just about crossing the red line, a bullish sign for DUST.
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