[james_gsx]

Looks like a good time to go against the trend for a nice short

I think Gold will start to show price action similar to oil before it broke $100. I wouldn't be surprised to see price bounce around a somewhat wide range then rally straight through $1,000. As of right now, the weekly chart looks bearish to me and that is confirmed by the daily.

The weekly shows a doji after a strong rally, which is typically a stronger sign compared to a doji after a sell-off.



The daily looks like it ran out of buyers near $1,000. There seems to be somewhat of a graveyard doji, but that's not the reason I would enter. I would enter due to the lack of buying and if price crosses below the 8 EMA.




Thoughts?

[smwinc]

Originally Posted by james_gsx »

Thoughts?

Man, it shows that you watch John Carters videos. I was sitting here thinking "this sounds familiar..."

John's Video: http://clicks.aweber.com/y/ct/?l=7om...ANM9ErQvKhM0Qw

[james_gsx]

haha really? I watched his videos for a while last year and that's what got me into gold. I stopped about two months ago since I didn't want to pay for his videos anymore. Thanks for the link.

[CandleWhisperer]

James what's up? Gold was taken out to the wood shed today and beat like a redheaded step child.

[james_gsx]

Yeah! Gold got hammered today, finally. So did oil, and I had a few calls on that but oh well. If you look at my video I did last night I was actually talking about gold. It pulled back close to exactly where I wanted it to initially. I will take a look at it tonight when I get home and see what I can come up with. What is everyone elses thoughts?

[MrGimp]

Well if its an inverse of the dollar, Id have to say gold will go higher. All these rate cuts are going to increase inflation and further weaken the dollar. Besides, our economy has a weak dollar policy for at least as long as Bush is in office.

I think this sell off is investors cashing in on profits in the commodity sector, combined with people who want to believe Bear Stearns marks the turn around in the market and the dollar.

[SunTrader]

Bear Stearns is partially the reason for this recent turn. Word is they had a lot of money in commodities and these trades have to be unwound by JPMorgan to square things.

That is causing others to take profit, and/or more selling, by many hedge funds which were leveraged big time. Which is driving money in to bonds, the usual flight to safety reasons, with equities not knowing which way they want to go.

So I would watch gold closely. Might be a fake out in a new up move before the real new up move actually begins.

[james_gsx]

Well theres a few things we can take away from this. It doesn't really matter who is selling or who is buying or why, but we saw in advance that there was a higher probability for SOMEONE to sell...