Gold Can Not Hold a Rally

After breaking over 200 bucks an ounce over 3 weeks, one would have looked for at least a 50% pullback. I had 1302 as a sell target and then 1331… August Gold could only manage an $88 rally over 3 days before taking another header here.  1215 traded last, but I have to imaging on Sunday night we take another run at 1200 and then the recent low at 1180.  Adjust your positions accordingly.

CZ settled below 5.00 for the first time in over 2-1/2 years.  While bulls argue the USDA is completely off base to the upside with the acres,  facts are facts. These are the numbers we have to trade through.  Informa’s numbers last Friday were no more bullish. Bottom line,  CZ looks like next stop is 4.60. For my shorts who have followed the sell rec from 3 weeks ago, next week should be a good shot to cover more shorts for profits.   Hold tight. Be patient.  Its time to get rewarded for having right trade in place.

As for the Sep Dow,   I still want to be a seller of the contract around the 15,000 level.  I’d scale in selling up to 15,300;  I would still look for sell off sporadically.
Today’s unemployment number was taken as a positive.
That’s a whole other conversation, as to the meaning of those numbers.   All I know is, there are1) a record number of “disabled” and also a record number of part time workers.
If this is the new economy, its a disguised version of a strong vibrant economy.  Its hard to get too excited above 166k new jobs, when a really vibrant economy throws off 500K every month.

Have a nice weekend.
CER

PS  If you like to become a client,  call me at 866.924.0486

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