My prediction of a nasty follow through started out looking bang on til someone named Bernake opened his mouth and as usual things started going the other way. With gold down $24 bucks, our market savior teased us with more comments on no interest rate hikes anytime soon, and an improving economy is upon us. It's these kinds of events one cannot predict and gold responded by rallying to down only a $1 before closing down in the $5 range.
Is this it for the gold/silver correction ? I am not convinced yet, though gold is up over $7 tonite. We still had one big nasty sell signal on Friday with record volume on the GLD and today being another down day. So before the charts can give us a new buy signal we will have to see a nice $20 plus gain to bring back the spec players who will be very cautious after Friday's power dump.
I hope to bring some new trade ideas to the blog soon in the blue chips as we move into a possible Santa rally next week. If this fails to materialize, I will be adding some of these ideas into the new year for sure, as well as my current penny plays and some daily top trader as a possibility too. Be cautious out there !
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