UPDATE 11:42am EST: BREACH! As usual Gold did the opposite of what was expected
I had the audacity to short the precious metal and this is what I got.
Well, I’m out of GLD again with a tiny loss. Not sure I’m ready to load up on calls yet here. But this breach changes everything – based on the wave count it had no business being above the 892 line. Maybe this is the new line in the sand for Gold – let’s see if it sticks.
UPDATE 12:30pm EST: The triangle continues – unless we breach those lines swing traders are having a field day:
UPDATE 2:11pm EST: So far the triangle has held the line. Remember that a breach would open us up to the blue scenario.
UPDATE 2:21pm EST: I just grabbed some March SNDK calls – by mistake actually – planned on getting the Februaries. Anyway, defensible and mental stop around 11.5.
UPDATE Closing Bell: It’s almost closing time and the ES is creeping back towards that triangle resistance line on basically vapor (i.e. flat signal). Now, I’m not in the prediction business, but a possible scenario I can see happening here is that we’ll do something similar as yesterday. MMs bang the tape higher and horrible news over the weekend brings us to the bottom of the triangle and perhaps lower. Not saying that will happen but it’s a plausible scenario.
I will post my usual weekend forecast on Sunday afternoon. Now, I’ve got more coding to do. Enjoy your weekend, you rats!