One quick note, this blog has an area for comments and questions. You can also email me with comments or questions if you like…
I wrote last night that I thought there would be resistance every 25 dollars on the way up to wherever the top will be in Gold..I picked that number, because its an easy, round target as we trade up through virgin price territory…We posted a high today, so far, at 1,123.40….Nice to see someone has a sense of humor to put out that .40 print… In any event, that was close enough to 1,125 for sellers to come in and nail it for a quick 14 dollar break, as the trade fell down to the “old” all time high at 1,111 area, then solidified after finding support there.
I think this is s pattern we have seen and will continue to see, new all time highs, some traders get long, looking for a continuation, other traders get stopped out of shorts,and then the market capitulates with a quick down-draft.
Over night in the grains, all settled lower after a volatile night. SF settled down 4-1/2 cents after being as much as 8 cents higher, trading in a 16 cent range…
CZ settled 7 cents lower at 387, as the contract was under pressure, dropping 10 cents in the last hour of trade overnight. WZ settled down 3 cents at 525.
Today the focus, once again, will be on 1) dollar weakness, 2) Crude Oil Prices, 3) Gold Volatility, and 3) Action in the Stock indexes, as we digest the 1/2 way back point from the massive melt-down. Will the stock indexes hold here at these levels, or fall prey to technical traders and the reality that it was a very light volume rally over the last 8 months? Only time will tell, unfortunately.
I don’t think, however, it would be out of the question for a pullback from these current highs after such a sustained, light volume rally.
Good Trading