Gold read appears to be correct
It's looking more and more like that was nothing more than a short covering spike this morning and it reconfirms my thoughts that I want to wait this precious metals market out rather than chase it. We should see a few more attempts to push higher in the bullion but the advance off the initial leg is likely dead and more consolidation is needed. That leaves range trading if you are interested. It also leaves open the idea that the metals stocks will come back in and with that notion I wait.
As with the general equity markets, there is some attempt to work higher but it is labored at best. The problem is that with volume so thin, any move (higher or lower) can be exacerbated short term so you have to be careful with any short term trading ideas. If you intend to play the short term, I would do it with a momentum trade off an multiday setup using the breakout point as a stop in case you are wrong. That way you can keep risk small, grab a few points and exit before the move vanishes.
As with the general equity markets, there is some attempt to work higher but it is labored at best. The problem is that with volume so thin, any move (higher or lower) can be exacerbated short term so you have to be careful with any short term trading ideas. If you intend to play the short term, I would do it with a momentum trade off an multiday setup using the breakout point as a stop in case you are wrong. That way you can keep risk small, grab a few points and exit before the move vanishes.
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