Gold Prices Have Just Formed a Classic Technical Pattern That Hints Even Higher Prices Are Coming

New York (June 7)  Investors continue to enjoy the "flight to safety" investments, which are headlined by the exchange-traded funds for U.S. Treasury bonds, gold bullion and utility stocks.

The best investment for 30-year U.S. Treasury bonds is the 20+ Year Treasury Bond ETF (TLT) . Gold bullion is best traded using the SPDR Gold Shares ETF  (GLD) . Investors seeking dividends invest in the Utilities Select Sector SPDR Fund (XLU) .

Investors interested in junk bonds trade the SPDR Barclays High Yield Bond ETF  (JNK) . Buyers beware that junk bonds tend to perform in tandem with stocks, not bonds, so investors should be cautious when stretching for yield. The junk bond ETF lags the other three "flight to safety" investment choices.

Keep your eyes on the 200-week simple moving averages as these are the "reversion to the mean" for each of the exchange-traded funds. The "reversion to the mean" is an investment theory that says the price of an ETF will eventually return to a longer-term simple moving average. A logical choice that's easy to track is the 200-week simple moving average. A ticker trading above its 200-week simple moving average will eventually decline back to it on weakness. Similarly, a ticker trading below its 200-week simple moving average will eventually rebound to it on strength.

Source: TheStreet