August '12 Gold: Neutral Positive Transition

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- The MKT has produced a positive signal but has yet to confirm the signal and remains in neutral. On the SELL side REVERSAL strategies can be executed at the UP or near the previous session high point. Avoid this strategy on higher levels as any new strength has the potential to be the beginning of a move. If the integrity of the previous session high remains intact, UP FADE strategies can be accepted. Use a BREAKOUT strategy as a signal for a DIR FADE. Only take this trade if the previous session high point remains intact.

- On the BUY side be more aggressive after the previous session high has been taken out. UP BREAKOUT strategies should just "go", so keep risk parameters tight. FADE into any negative reaction off an unsuccessful upside BREAKOUT against the DIR. DP FADE strategies are recommended early in the session or near the end.