Gold And Equities Under Pressure
No surprises here; gold andequities are under pressure. After rallying six days in a row, equities areunder pressure and the pattern is consistent with a market top. All rallies toresistance levels should be sold in equities until further notice. The heavyvolume and volatility on the breaks, and more importantly the rip-you-face-offrallies, are a sell signal.
Very similar to equities, goldhas rallied four out of the last five days, reached resistance in holiday tradeon Monday and is now headed lower. The dollar has picked up steam along withthe cryptocurrencies, indicating gold is ready for a sell-off. The bottom endof the range and our first downside target is $1,300.
This market action has beenbrought to you by the clueless Fed and central banks around the globe. Theyhave lost total control and figure to be the black swan event to put pressureon all markets. We look for a stronger dollar, which will put short-termpressure on gold.
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.