Yesterday we had a ton of activity and I am going over positions one by one. The Dow Short position was/is rewarding. Tuesday or Wednesday I wrote about Corn trading range choices. Yesterday, we took out the 13.50 level. While I had been a seller initially there, I had indicated if it moved sharply higher I suggested flipping and going w/ the break out.
Trades like that are dangerous b/c you can get just chopped to bits on a volatile market. That being said I am long August gold on this break out. Support is going to remain 1350 b/c it was good resistance for the last 8 weeks.
Its just a technical range trade. But the stars aligned yesterday for a long move in gold. The mess in Egypt, the sell off in US equities, the feeling that more good economic news will hasten the Fed’s eventual decision to dial back to money spigot from 85BB a month from “indefinitely” to “somewhere south of indefinitely” maybe enough to have interest rates rise. A rise in interest rates tips money out of stocks and into other investments.
For now, I’m long this August Gold, looking for a rally up to the next resistance at 1394.
