The gold chart looks pretty suspicious to us. One bar doth not a trend make, but as a speculation we like it, so we closed our shorts and went long 1 unit of a 5 unit position. Note that the conservative trade is when the downtrend line is penetrated.
Meanwhile the market is slipping down a slope of hope and a greasy playground slide. As we noted some letters ago we were hedged. Perhaps it is time for readers to think of partial hedges, though the stop is still pretty far down there.
Buying SPXU or SDS (leveraged shorts of the SPX) furnishes some tranquility as the market eats up .20 or .30 a day.
We previously thought that we had a completed alpha-beta-gamma-zeta pattern here. Faked out. It now appears that we are in the gamma wave (or perhaps call it the C wave) and some significant support areas have been violated. Given the PnF analysis and the Greek drama we will personally remain hedged in the majors for the moment. This has been an extremely subtle market, and difficult to analyze.