Gold Rush Or Dead-Cat Bounce?
Gold and equities are spiking higher this morning, with theDow up over 300 points, continuing Friday's late-day rally. Gold, after beingup more than $15 overnight, has slowly grinded lower and now is up $5.
The big question is whether this is a dead cat-bounce inmarkets that are going lower or are the bottoms. We look at this as a dead-catbounce and a natural rally after a heavy sell-off. Both gold and the equitiesappeared to have peaked and what we are seeing is a bounce within markets thatare headed lower.
The volume and volatility are indications that the tops ofthe markets are in and these vicious sharp rallies are bounces that should besold. Gold should fail around $1,330 and bounce from $1,300, while the equitiesshould fail here and make a lower low before the week is over.
Contributing tokitco.com
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.