Markets Are Crazy; Gold Trying To Break Out To Upside
The equity markets have been ascrazy as I have seen since the Internet bubble of the 1990s with one majordifference -- they never go down. The dot.com craze was wild in bothdirections; stocks always ended up higher but had major swings of 3% to 5%.Today's market has not seen a down move of 3% in two years, which is thelongest such period in history.
For the last month, the gold market has been acting like equities, going up almost every day, and allselloffs have been met with plenty of buyers. Every dip has been met withbuyers since the lows were made at $1,238 on Dec. 12. The rally has beenincredible and like equities, killing the gold bears.
The breakdown on a weekly basiscould come to a head today. We have written that $1,330 is the key level on aweekly basis and this morning gold reached $1,333 before failing. As of thiswriting, at 8:53 EST, gold was trading at $1,326.90, giving up half of thegains. It's going to be a volatile day; it all comes down to the closing priceof $1,330. My guess is it fails and gold heads lower, but I will be prepared tostop out on a close higher than $1,330.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading
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.