Gold futures extended on Friday and should now be bought. Our model portfolio has the maximum number of (3) commodity positions already, so we cannot take this trade but we maybe able to do so tomorrow as all those positions are up for review. No need to wait if you are not copying the composition of our portfolio – buy now. This is similar to the ‘sell $’ trades already advised earlier today.
Five year notes also extended but we would not use this to buy the longer maturities. We are quite bearish about 10- and 30-year US treasuries and so will just wait so see if this new bottom extension in the shorter part of the curve provokes a bounce that we can then re-sell. If you are already short of any part of the treasury curve, based on our earlier comments on October 29th, cover and wait. If there is a bounce in the 30-year towards 155 in the near future, sell it. Charts:
