HMMMMMMM -- Pork Bellies doing pretty well.
anyway, agree with Holly except for last sentence, but 3/4 of a post correct aint bad !
(tongue in cheek Holly !)
selling off for a few reasons, one of which is its reached a natural resistance point that is historically correct on the H4 chart, while the other is that the US interest rates situation has shown the US is capable of handling its financial "problems", although in for a slightly bumpy time for a while, which should be followed by all you brits and the rest of europe if history is any judge --- we go in first and we come out first, and I dont think this time is any different (but time will tell, wont it ?)
if gold follows its normal and historic patterns, for which theres little reason to believe it will not, then we are prob looking at a 74% retrace to approx 934.80 weekly pivot and a continuation back up ----- unfortunately, this will take a wee bit of time and shall make your margin look like hell.
If I were playing this, I would open a SHORT counter trade which should hedge your LONG and play it as the pros will. (just make sure you have the margin to cover the long when you finally exit your short, because it will be huge !)
Now holly, only in the best of spirit shall i mention that NOTHING goes straight up without coming down for a while, and the reasons for that are the simplest in the world. The "institutions" have sold into the rally, taking their profits and setting their shorts --- this gives them TWO great situations ---- at this point, we "dumb money" retail traders will be selling to hold our profits and the banks and mm's will be picking up MORE shares to be ready for the upside move to come down the road. It gets even better for them when the price drops so low that people bail in disgust, and lo and behold the banks BUY all the CHEAP shares to COVER THEIR SHORTS and NOW THEY HAVE ALL THESE SHARES, AT A LOW PRICE, TO SELL INTO THE NEXT UPSIDE MOVE.
THAT is how they make their fortunes, not some old greybeard or govt worker, moving prices about !
Its the way EVERY market works, just that its SO CLEAR with forex AND commodities !!
enjoy and trade well cause we yanks love youse guys --- where the heck would we be without you ???
mp
