“As we go through the charts of the daily indexes and individual names we see a lot of POL’s (Pullbacks Off Lows). In downtrending markets POLs are the only pattern you need to know for shorting. Those POLs are also the what to watch out for if you are long.”
It certainly would appear as though the Federal Reserve is getting exactly what they want, higher equity prices. Could the current monetary policies of “extreme” asset purchasing by the Fed be creating a bubble type atmosphere in equities? I think so! Could we be heading for some turbulence in the very near future after some shot-term attempt to push the averages higher on some Greek deal?
Over the past five months gold has fallen sharply and is no longer headline news which it once dominated back in 2011 when it was making new highs every day. The shiny metal has been under pressure because traders and investors started to pull some money off the table to lock in gains. Gold prices had surged so fast most advanced traders knew that final high volume surge was not sustainable.
You may have seen a TV ad where "traders" describe their strategies, and one says, "I trade on fundamentals." That sounds very reassuring -- except that, on any given day, "fundamentals" are a mixed bag:
You might have a good U.S. employment report...but bad news from Europe
A positive Fed statement...but a negative housing number
Strong earnings...but slowing consumer spending
To a first-time observer, watching a technical analyst spot a major trend change in a financial market before it occurs can seem as mystical as pulling a rabbit out of hat. But once you learn the tools of the trade, you know there are no tricks up the technical analyst's sleeve. What you see, is exactly what you get.
In my most recent few forecasts for subscribers and public articles I’ve discussed a major correction in Gold, and it dropped $208 within 3 days of that forecast several weeks ago as Gold traders will recall.
In my most recent few forecasts for subscribers and public articles I’ve discussed a major correction in Gold, and it dropped $208 within 3 days of that forecast several weeks ago as Gold traders will recall.
Gold hit $1805 tonight in trading, a Fibonacci Fractal figure I gave out a few weeks ago as a possible top. We are close to a near term high in Gold and Investors should be trimming back positions on this run.
