Gold down, silver down, government down…

1001gld

 

http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=9&dy=0&id=p79177025382&a=255869372

That devilish bar 9 days ago — a fake out power bar — chased us from our short position.  Today gold (and silver) gapped down and we put on a scale in short (in both).  We read both as sell signals and will increase our positions as the chart warrants.  Note that our exit was not the most patient practice.  But power bars against our position always get our attention.

Silver ad the same pattern so we won’t show it.  On the day the government shut down the market surprised by moving up.  This is because all the best professional opinion was short.  But it will not do that if the suicide bombers cause a government default.

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This Post Has 2 Comments

  1. camolawyer

    I’m a newbie to your service and to technical analysis and am having a hard time understanding this statement:

    “On the day the government shut down the market surprised by moving up. This is because all the best professional opinion was short.”

    Yesterday’s market reaction to the shutdown baffled me and I’m just trying to wrap my head around how that happened.

  2. bigkolache@hotmail.com

    I think the government defaulted 17 trillion ago.

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