… But, That’s Not The Real Story
First, this morning’s action in gold (GLD) tells us, it’s not a bull market.
The asylum escapees (gold bulls) from yesterday, might paint today’s action as a buying opportunity.
Well, it could be a buying opportunity for short term trades (not advice, not a recommendation) but that’s not what this site is about.
Bull markets do not let you get aboard comfortably.
Case in point:
For those old enough to remember, harken back to the bull market launch of 1995.
It seemed like every day was up into new highs with nary a retracement until a year and a half later.
No, there’s something else going on with gold.
It may indeed continue to move lower from here. However, there’s a price action feel that’s not right.
Potential Coup D’état Set-Up ?
Those who own the gold market(s) know full well, there’s a bunch of rabid ‘collapse’ types who believe the metal’s their salvation ticket out of events to come.
Those in control, need to get as many as possible on the wrong side of the trade before there can be a sustained long-term (or fast and sharp) down move.
Such a move, if it goes low enough and fast enough, would likely take out the majority of the ‘stacking’ community.
Looking at the un-marked chart of gold (GLD), just where would that location be … where everyone, except the few, are positioned incorrectly?
As discussed previously, the area shown below would be a good location for an up-thrust (reversal) condition.
In addition, that location’s between the 38% and 50%, retrace level(s) from August 2020, to March 2021.
One can speculate on just what would cause or enable a last-gasp push higher above the GLD 171, level.
Well, for starters, how about a massive volcanic eruption that results in long-term destruction on both sides of the Atlantic.
As Dan (I Allegedly) says with his post just out, ‘the economy is in a perfect storm’.
Anything can happen.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279