UPDATE 2:38pm EDT: This morning I was saying this about Gold:
Gold is being difficult – as usual. But before you throw in the towel let me point out the game plan. See, in boxing you’ve got something like a 1-2 combination – throw a jab and than follow up with a nice upper cut or a hook right into your opponent’s smacker. We threw the jab by punching through that ‘fucking diagonal’ – the hook for Gold will be a breach of (and close below) that coveted 900 line. As you can see that line served as resistance back in December and it now has turned into massive support. I think it’ll be taken out soon – when exactly I’m not sure. But when it happens we’ll see a big drop to the downside.
Well, lo and behold, Gold actually gave up all its early gains and the ‘big contract’ – the one trading in the pits at the COMEX already closed below 900 today!
Loving it!!! This is very significant and with some luck we’ll get a big slide to the downside here soon – after of course the obligatory retest – yaaawwnnnn…..
Nice present for a Friday afternoon
UPDATE 3:40pm EDT: I’m doing the daily Zero wrap up a few minutes earlier because I have to run off right at the closing bell:
The PZI got whipsawed today – down – up – and now down again. It’s a trend trading tool and doesn’t like that kind of tape. Fortunately the Zero Lite came to the rescue with solid signals – stayed below the zero mark while we dropped – then it pushed and stayed above while we rallied – finally it warned breached the zero mark again as we rolled over. As I’m typing this the Zero Lite signal is actually touching the zero mark again and we’re getting some long candles – damn, I’m going to have to redo my chart… &@%!$!~
Okay, if I was holding short positions I would probably start thinking about taking profits here. That’s pretty much it for today – I’ll be posting ‘Fujisan’s Naughty Spreads’ on Saturday and then follow up with my weekly forecast on Sunday afternoon.
Enjoy your weekend rats!