Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

THE VULCAN REPORT Review of COMEX Gold FUTURES ETF (GLD) as of Tuesday, July 13, 2010 Today's Price Action Change 1.0200 (0.87%) Weak Bids into the close. MARKET SENTIMENT PulseScan Swing Vix PulseScan: -27.63 Swing Vix: -29.41 The Market

THE VULCAN REPORT
Review of GOLD Spot (XAU USD)
as of Tuesday, July 13, 2010

Today's Price Action

Change   14.1801 (1.18%)
Strong Bids into the close.


MARKET SENTIMENT
 
PulseScan Swing Vix

PulseScan:    -25.65
Swing Vix:    -27.71

The Market Pulse is negative since it is trading below its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of    2 period(s) ago.
The Swing Vix is not currently in a topping (above 39) or bottoming (below -39) range.   

A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area. 

The last signal was a Over-Bought Sell 45 period(s) Ago.

The Swing Vix does not currently show any Failure Swings.
The Swing Vix and price are not diverging.

        Since the last Swing Vix signal, GOLD Spot's price has increased 0.20% , and has ranged from a high of 1,217.7200 to a low of 1,194.2400.

       MOMENTUM

     MARKET TREND - Currently the TREND is - Neutral within the Bullish KUMO Consolidation cloud (Possible Trend Reversal) with Downside Bearish Breakout risk. A close above 1,216.5801 is needed to re-establish the upward trend. However A close below 1,167.5000 will establish a new downward trend.


        TREND STRENGTH -

The close is currently Above it's Long Term period moving average. - 1,091.2051


The close is currently Above  it's Intermediate Term period moving average. - 1,205.3320
The close is currently Below  it's Short Term period moving average. - 1,210.0349
   

         INTRADAY PRICE PROJECTIONS
        RESISTANCE 1,212.8015
        SUPPORT 1,200.7786

       WEEKLY PRICE PROJECTIONS
       RESISTANCE 1,213.5800
       SUPPORT 1,184.8000

MONTHLY PRICE PROJECTIONS
BULL MARKET UPTREND - (12-18mo) PRICE TARGET = 1,612.6500
Long term Trend Line resistance is currently at - 1,265.0200
Long term Trend Line support is currently at - 1,091.2051


HYPER PARABOLIC CIRCUIT BREAKERS
PLUNGE PROTECTION TEAM CIRCUIT BREAKERS



    
       VOLATILITY

On 7/13/2010, GOLD Spot closed  
above the lower band by 34.7%.
This combined with the steep downtrend suggests that the downward trend in prices has a good chance of continuing.  However, a short-term pull-back inside the bands is likely.

     Pandora's Little Black Box of - (Buy & Sell Signals)

BUY Signals : 
 

SELL Signals :  


Final Thoughts:  The Hunt brothers, back in the ’80’s tried to corner the silver market-with help of wealthy Saudi families-artificially driving up the price. Then, the word was out and other brokerage houses told everyone to start buying Treasury bills, and other foreign investments which collapsed the precious metals market(s). Guess what? The then head of the “Federal Reserve,” Paul Volker, “bailed” the brother’s out, and “restructured” their holdings-with our/your money. They (Hunt’s) lost nearly EVERYTHING. Now, when the prices are up, the snake oil comes out…”buy gold” “buy it now” “easy, cheesy, schmeesy money” “protect yourself and your family.” Think back, about 3-4 years ago…”Get approved for an ARM (Adjustable Rate Mortgage)” “easy money” “ARM yourself, protect your family” “cheaper than a conventional loan” Get the picture? What was everyone saying also? “Reverse mortgage” “Live the life you deserve, reverse your mortgage” blah blah blah… How’s that real estate industry doing these days??
Where were ALL the precious metals ads when they (metals) were $350-$500/ounce??? Just wait until “we” fall, the Chinese are going to DUMP ALL their “gold,” then what?? Bank holidays? Cessation of welfare programs? Can you say, “Anarchy”?
It is to be further noted that the Hunt bros. lost their shirts because COMEX changed the rules in that they would not allow any contract to be delivered, you could only buy silver short thus the Government re-set the price way below the bubble inflated price thus wiping out any long term gains.


This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators.  This information should only be used by investors who are aware of the risk inherent in securities trading.  The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.