One last quick update on Gold. Just a reminder I'm not a fan and almost don't like the fact I'm long but so be it and if you got long where I started talking about it most recently now you have some options, however the price action to start the year has been very constructive..
Actually reminds me a bit of how oil/energy related stocks started trading at the beginning of last year where they just took off as managers were clearly underweight and wanted exposure. So far up 7-9 sessions with really only one lower close and a decent increase in volume...
Furthermore we had a gap & go to start the year and that is also a sign of strength. If you're a trader and at a multiple of initial risk here is where you can peel off a piece to finance a bigger hold and 'trade to invest' as I call it. it is starting to get extended...
and I would NOT chase it here. I drew in (sloppily) what I think may happen IF (again BIG if) this is the start of a more secular move/trend but the higher we run first the better as more folks are left in the dust and have to chase which will form the inevitable base etc...
Taking the same approach I took early last year that ended up with a small gain and a giant reversal which is what often happens with gold. Will this time be different, who knows but I will point out that volume has been average these first few weeks...
which is a positive as it hasn't taken much volume to move the market, so should that continue or even increase it means there doesn't seem to be a terrible amount of overhead supply at least for the time being.
Again expecting a consolidation at some point so do not chase.
Again expecting a consolidation at some point so do not chase.
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