|Gold breaking down|
|Written by L.A. Little|
|Friday, 15 February 2013 05:54|
Yesterday gold began to break down. It came on lighter volume as compare to the swing point regardless if you are looking on the short or intermediate term time frames so it will be suspect and that sets up a likely retest and regenerate sequence to follow but this is one of those multiple time frames, multiple swing points cases that one has to very wary to step in front of.
You can see the break has already occurred on the short term time frame and the weekly time frame is a question mark today. As I write, gold is down $13. Looks like a flush coming.
The general markets continue to do what they have been doing - crawling and hanging. Like a baby finding their first footsteps, the market alternates between the crawl, then the lift, a little slip every now and then but mostly hang. It's as everyone and their mother has finally figured out after 5 years that stocks are a screaming buy.
What I dislike about these situations is that the crawl is subject to a recall at any moment and what I mean by that is that the advance is so baby-stepped that one big down day can easily wipe out two weeks of work. That's the danger of continuing to buy as we get higher and higher. If you are going to buy, look to strong stocks or ETFs that are already retracing, not continuing to advance.
|Last Updated on Friday, 15 February 2013 06:32|