GOLD TRADE ALERT (11:30 pm EST)
Gold prices broke dramatically below our stop loss point of $1191 in early trading today (around 10:00 am EST) and hopefully triggered a sell signal for many traders. Unfortunately, I was not one of them ( I usually apply stop losses manually as I watch the markets very closely; however, I was not online this morning) so the question is now whether or not to bail out with a loss or "ride out" the correction. I have decided to bail out. The loss right now is about 2.5% which is significant but not disastrous. It is highly likely that gold (and silver) are still forming a cycle bottom here from which a significant rally will commence, so we may be able to recoup this loss soon. Selling gold long positions today.
Apparently, a better than expected jobs report from the U.S. Department of Labor triggered investor fears of the Fed raising interest rates sooner than expected. This is why the broad stock market is tumbling today. The U.S. Dollar Index, however, is surging which suggests many investors are fleeing to the dollar (not gold) as a safe haven place to park their money. The broad stock market indices are now approaching the buy spots I suggested in my last blog. If these areas hold, I may look to go long. If they break, we may be seeing the start of a serious correction in the market.
i will analyze what's happening in these markets in more detail this weekend.
Gold prices broke dramatically below our stop loss point of $1191 in early trading today (around 10:00 am EST) and hopefully triggered a sell signal for many traders. Unfortunately, I was not one of them ( I usually apply stop losses manually as I watch the markets very closely; however, I was not online this morning) so the question is now whether or not to bail out with a loss or "ride out" the correction. I have decided to bail out. The loss right now is about 2.5% which is significant but not disastrous. It is highly likely that gold (and silver) are still forming a cycle bottom here from which a significant rally will commence, so we may be able to recoup this loss soon. Selling gold long positions today.
Apparently, a better than expected jobs report from the U.S. Department of Labor triggered investor fears of the Fed raising interest rates sooner than expected. This is why the broad stock market is tumbling today. The U.S. Dollar Index, however, is surging which suggests many investors are fleeing to the dollar (not gold) as a safe haven place to park their money. The broad stock market indices are now approaching the buy spots I suggested in my last blog. If these areas hold, I may look to go long. If they break, we may be seeing the start of a serious correction in the market.
i will analyze what's happening in these markets in more detail this weekend.
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