Gold's Instant Replay
Another day, another chance for agold rally to fail. This has been the pattern for weeks, as every rally is metwith sellers. The strong hands push it up; at the same time, they become theweak hands when they reach the top. New money strong hands push it back down,and the cycle continues until gold breaks out one way or the other.
This morning gold is higher. Willthis be the day it breaks out to the upside? Although we are long-term bullish,we have no expectations that gold will break out today, tomorrow or the nextday. Because markets don't announce themselves, the best course of action hereis to observe.
One major problem traders have isthey think they can force the markets. Sometimes the best trade is the one youdidn't make. Until gold shows its hand and breaks one way or the other, we willwatch and wait for a reason to play.
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