What I’m referring to is the problems with the economy and the sovereign debt problems in Europe. It would appear as though no politician wants to touch these major economic problems with a ten foot pole. Of course like everyone else on the planet they are concerned about protecting their own jobs and getting reelected.
The market action in the equity markets today can only be described as negative. Gold may be having a major reversal, and the dollar is soaring to its best levels in quite some time. Like I have said before, the markets are never boring.
The gold market reach to new high levels for the move and hit $1,920.50 an ounce. Unfortunately was not able to maintain this level and fell back dramatically creating a potential negative engulfing line similar to what happened on August 23. It is too early to say the market has topped out but certainly one should be very, very careful at these levels.
As we mentioned in previous publications we have been looking for the gold market in particular to make its high in the 3rd quarter of the year. We may have seen the highs, but it is too early to tell. Short term, intermediate and long term traders should maintain long positions with the appropriate money management stops in place.
Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 90
Just click here for your FREE trend analysis of gold ETF GLD
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