“When The Circus Is In Town You Have To Sell Peanuts” Basically what we are saying is when everyone wants it let them have it. The news media does a good job of this with their hype which is ALWAYS AFTER a sector or issue has moved. Take a look at the charts below.
You tell me? Are we closer to trend channel resistance? Or trend channel support?
Lately we’ve all been hearing the rants and raves about GOLD and that’s fine BUT what have we tried to drive home to you folks the last few months? Listen to what the charts are saying and not TV, don’t get sucked into the emotional hype.
If you are looking at buying gold and related exposure then the charts are saying DON’T CHASE IT, LET IT COME TO YOU in the form of a Pullback Off Highs longside trade set up. Its as simple as that.
If you are long gold and related expect some digestion of gains to relieve this overbought at resistance condition. You’ve had a nice little run as of late let it catch its breath. That’s what pullbacks are for.
