Market Cockpit

Market Cockpit

For example the gold market:

  • The market cockpit is an overview of quantitative indicators and data to make better tactical decisions.
  • Trend: positive. As a rule of thumb, have at least a small long position in a positive trend.
  • Trend deviation: momentum was close to overextended in February. This is short-term rather negative. However, strong momentum is medium-term positive.
  • Volatility: nothing special
  • Cycle: dominate cycle expected a peak in February. Quite possible we will have a multi-week consolidation here.
  • Exhaustion signals: the pullback last week triggered some downside exhaustion signals. (in an uptrend a potential spot to add long positions)
  • Relative hedging: COT data are far from being extreme, so quite possible the up move in gold may continue. Medium-term tops are often associated with extreme positioning.
  • Seasonality: rather on the negative side: weak seasonality till June.
  • Historical patterns: best-matching patterns of the past suggest some consolidation and in general higher prices in the second-half of the year.

Some consolidation/correction over the next couple weeks is the most likely outcome. Afterwards the gold price is expected to rise and break above the 1370-1400 USD resistance area.


About me

Former hedge fund portfolio manager/trader

15 years of experience in financial markets

✓ Master of Science (MSc) in Business and Economics from the University of Basel

✓ Developed quantitative tools for an asset management