Today the gold market gave a trading short signal, as illustrated by the gap across the short term trendline. It is always traumatic for those who have adopted (or married) the gold idea. This is a trading signal. We have marked long term stops for long term traders. Remember. It’s long term traders who win in the end. Though sometimes the short term can be painful. We have marked two stop points, one at 153.95 and a truly long term wave stop at 144.93. If you contemplate the waves here you can see that the true long term stop is the lower one. Then of course it is always possible to hedge or scale out of some of a position at the higher stop. We will probably be shorting ourselves. Has gold made a fool of us in the past? Please don’t ask.
Today’s gap in the euro offers an opportunity to put on a short or to add on to positions. We would stop it 2 or 3 percent above December’s high.