I did an update on gold (GLD) and gold stocks (GDX) at Trade Followers today. Things aren’t looking good. Here’s the chart that went with the post.
I’ve done an update to gold with its social media momentum indicators at Trade Followers. Long story short is that gold needs to move higher soon or the downtrend could accelerate.
The sell signal issued for Gold (GLD) on 3/19/14 from quantified StockTwits messages has ended. The downtrend line in quantified messages has finally be broken to the upside. Unfortunately for gold bulls it didn’t happen after a strong positive divergence with price. As a result, the sell signal is merely closed rather than flipping to a buy signal. For aggressive traders who believe in GLD there are other factors that might warrant a tightly controlled long trade. Notice that GLD had a strong volume washout in June of 2013. Then a double bottom in December 2013 on lower volume near the 114 level. That was followed by a very strong rally up to the descending trend line that has been in place since the peak in late 2012. It is logical for the ETF to be turned back at that trend line again, but since the double bottom has held for nearly six months the odds are increased that any retest of the 114 area will hold. So a long
Below are charts with the total intensity scores of the most active stocks on Twitter for the week and month ending 5/6/14.
Below are charts with the total intensity scores for the most active stocks on Twitter for the week and month ended 4/15/14.
Below are the intensity scores for the most active stocks on Twitter for the week and month ended 4/8/14.
Below are charts with the bearish intensity scores for the most bearish stocks on Twitter for the week and month ended 3/25/14.
Below are charts with the total intensity scores for the most active stocks on Twitter for the week and month ended 3/25/14.
Quantified StockTwits messages are flashing a sell signal for gold (GLD). After advancing for three months with support from the StockTwits stream GLD has turned over at a long term trend line for price. The reversal in price was preceded by a negative divergence from StockTwits that lasted a month. Now support from the StockTwits community has broke the confirming up trend in support. This creates the sell signal and increases the odds that GLD will at least consolidate in the near term and possibly resume its long term down trend.