The gold price gave a buy signal at the end of last year. The gold price is approaching record highs. We mentioned gold gave a buy signal in our last update. The rule is when the black line in the top panel crosses above the red line a buy signal is generated. The indicator uses 3 Fibonacci numbers, the 5 month exponential moving average, the 34 month exponential moving average, and an 8 month period of smoothing to calculate the indicator.
We intensely dislike Bitcoin due to its flagrant energy use based on a Proof of Work setup. We can’t deny that a buy point was generated recently. Bank failures, war, general instability have aided Bitcoin’s fortunes. Fear of missing out will ensue shortly.
Ethereum had a momentous day yesterday. The Shanghai upgrade was completed. This was necessary to move Ethereum to Proof of Stake, reducing energy usage by 99% compared to Proof of Work. This allows $34 billion that was staked to Ethereum to be available. The buy signal was generated this month. If I had to choose between Bitcoin and Ethereum, it would be Ethereum hands down. I don’t know what purpose Ethereum has yet, perhaps someone can educate me. We have a heavy loss on our ETH and the move from $1000 to $2000 is welcome.
On a whim, I checked QQQ today. A buy signal was generated recently. We used the opportunity to purchase some. If this signal is a guide, the punishing correction over the last 15 months is temporarily over. QQQ tracks the top 100 Nasdaq companies.
Finally, OPI. What a disaster. The REIT market had been hit hard. We bought in months ago with a good dividend. The REIT continued crashing. OPI is buying another REIT in an all share transaction. If that wasn’t enough, the dividend got slashed from $2.20 a share to $1 a share. It will take years to recover the money from dividends. We’ll rebalance at the end of the year.
A sell signal was given early last year (black going below red in upper panel). There seemed to be brief hope earlier this year, before the price bounced down hard. Previously, I would have rushed in and bought more shares. Nope. Not again. We’ll wait for a buy signal before buying more. Some anecdotal evidence this trading system is working.
Sincerely yours,
smilingdad
Copyright © 2023 smilingdad. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of smilingdad, its owners, sponsors, affiliates, or subsidiaries.
smilingdad 