Gold/USD

Daily Gold turned down in high risk weight area. This is not unexpected, however the strong LT is still the dominant force to be respected. No change as yet. For those interested to play Platinum. That market appears to want to break its downtrend and could soon explode to the upside and quickly retrace a multi-year divergence versus Gold and Palladium. A 30% switch from Gold to Platinum as a LT hold looks like a no brainer.

(Stay long with the strong LT trend and an advancing lower risk weight. With Weekly and Daily in higher risk weight territory it is entirely possible that this pair may slow or even retract a bit, but the trend is Up and there is no divergence of any kind that would suggest an end. Besides it looks like Silver is finally taking a lead which could positively affect Gold and also Platinum)

Silver/USD

Silver has a similar look as Gold ST but with an even stronger LT advance to complete. No change.

(Last week's risk increase to max position was right on time to benefit from a bit of a break in the Gold/Silver ratio. Otherwise a similar yet even stronger looking picture than gold going forward)

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Gold/EUR

This pair does look a little more tired due to broader expected weakness in the USDollar. But with LT trend still up and without price to risk weight divergence it seems more opportune to stay with the position and ride out a potential further price reaction.

(Gold vs EUR looks a little more tired than vs USD. Without any sign of divergence, this pair also should experience further advance MT and LT)

Silver/EUR

ST correction may take place, but LT trend is up and risk for the most recent up-leg that started in November to last quite a while longer. No change in full allocation, although for every pair against gold and Silver one could read a decent percentage Platinum instead of Silver or Gold.

(Stay with full allocation. This market is far from finished)

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Gold/GBP

NO change for now, but we may lower allocation from 100% to 60% as soon as Hourly comes in line with Daily, i.e moves from low risk to high risk and turning down again. The divergence between Hourly and Daily may prevent an immediate decline and even force a quick rally. This market now does look weaker than the other metal pairs because there is fairly strong ST divergence between price and risk weight.

(We could see a bit of pause due to ST and MT high risk weight. Gold started an uptrend late 2015 and paused for a full 2 years until 3 months ago and is now breaking out its flag formation. We will need to see some kind of divergence between price and risk weight in both ST and MT time frames before a possible intermediate top can be considered. This may take quite a while to develop. Stay put with max allocation)

Silver/GBP

Similar to Gold/GBP. We tand ready to reduce as soon as Hourly risk weight comes in line with Daily. This could be anywhere between 1/2 and 1 1/2 days.

(This month's action appears to complete a significant low risk weight in Long term time frame. ST high risk weight may pause the uptrend for a short while as in between 1 and 3 weeks of more range bound price activity, but the overall risk is to the upside. Stay with Max allocation)

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Gold/Silver Ratio

This is now formally a downtrend with LT Monthly turning from Up to Down. Speculators could allocate more silver than gold, although we are happy to stay with a 50/50 allocation or 30% of the total allocated to Platinum.

(Silver appears to break downward from its recent 8 week duration attempt to move lower. The break towards 83.00 with down trending risk weight indicates much further weakness in the ratio. Time to move Silver to 50% allocation of the PM space investment All time high: 1941 = 97, 1991 = 90)

Euro/USD

LT trend direction changed from Down to Up as was expected. No change in strategy. Long Dolls fully hedged. Short Dolls cash basis cover.

(The narrowing risk weight range in monthly time frame supports to be fully hedged on long dollar exposure. Short dollar exposures only covered on cash basis)

Dow Jones

Strong rally after a weak New Year opening. But not convincing. Risk largely remains to the downside even with MT Weekly risk turning up from a relatively low risk level. Too early to call a serious intermediate bottom as we should first see price/risk weight divergence. No Change in 0% allocation.

(It is only 3 months since the All time high. Any strength facilitates selling if missed out on the earlier calls. This market only shows intermediate lows and has some way to go and not be touched until bullish price/riskweight divergence in Medium term time frames develops)