More News on Gold
Hey, this is kind of fun...you know, what I was talking about yesterday: the spot price of gold vs. its 50-day moving average and how that may tell us how severe the current correction will be.
So yesterday, gold gets above its 50-day moving average - finally, after sinking below it for most of January. But now - overnight - traders have shoved the price down again. It's down over $10, about $5 below the 50-day MA.
What will be interesting today is what happens the rest of the morning. When the rest of the sleepy-head traders start waking up, what will they do? Do they take the bait of this overnight drop and do an about-face from what they just did yesterday? It's always possible. Or will yesterday's break-through sustain itself - which means we should see the gold price bounce right back above the 50-day MA (which is now 1382.99).
Again, this won't change the great gold bull market. It's just a battle over where the price goes in the short-term.
Now, short-term may be a month, or three months. But it's not years. Nothing has fundamentally changed that will cause gold to start heading down long-term. We'll talk more about the fundamentals too, but not now. Now I'm just watching the battle. Like I said, it's kind of fun.
Meanwhile, stocks keep pushing higher - and this in the face of all sorts of indicators that are screaming for some sort of correction. Whether that correction is sharp, or mild; whether that correction signals the resumption of the bear market in stocks - the real primary trend that's churning behind the scenes, so to speak, we'll have to see.
But for right now, the action's in gold.
So yesterday, gold gets above its 50-day moving average - finally, after sinking below it for most of January. But now - overnight - traders have shoved the price down again. It's down over $10, about $5 below the 50-day MA.
What will be interesting today is what happens the rest of the morning. When the rest of the sleepy-head traders start waking up, what will they do? Do they take the bait of this overnight drop and do an about-face from what they just did yesterday? It's always possible. Or will yesterday's break-through sustain itself - which means we should see the gold price bounce right back above the 50-day MA (which is now 1382.99).
Again, this won't change the great gold bull market. It's just a battle over where the price goes in the short-term.
Now, short-term may be a month, or three months. But it's not years. Nothing has fundamentally changed that will cause gold to start heading down long-term. We'll talk more about the fundamentals too, but not now. Now I'm just watching the battle. Like I said, it's kind of fun.
Meanwhile, stocks keep pushing higher - and this in the face of all sorts of indicators that are screaming for some sort of correction. Whether that correction is sharp, or mild; whether that correction signals the resumption of the bear market in stocks - the real primary trend that's churning behind the scenes, so to speak, we'll have to see.
But for right now, the action's in gold.
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