I should have known this morning that it was a good idea to fade the new high,if only for a scalp. I awoke to my morning radio ‘financial commentator’ breathlessly talking about the new highs in Gold… And, I still think there will be resistance at every round number on the way up, probably on the nickle and dime, because that’s how people focus on these new high numbers, so 1120, 1125, 1130, etc, etc, etc. Each new high will be heralded until there are no more new highs, and right now the highs are being fueled by momentum investors. These are the same boys who pounded on stocks from 14,000 in the Dow down to 6,500. They are doing the same thing in reverse, now buying gold… But every one likes higher numbers, so they aren’t being scolded in the press… yet…
On a side note, the buying showed up again in the corn right around 1145…We had a nice bounce, and it seems that is when the computer buy programs chose to kick in. The M.O seems to by slam it in the morning, then quietly buy all afternoon…
In thinly traded markets, these funds can push these grains around, and that is exactly what they are doing.
Good Trading