DISCLAIMER

PLEASE READ THE DISCLAIMER AT THE BOTTOM OF THIS PAGE WHICH APPLIES TO ALL CONTENT IN THIS BLOG AS WELL AS ANY OTHER MATERIAL FROM WE ARE FUTURES TRADERS LLC. READING ANY CONTENT BELOW CONSTITUTES AN AGREEMENT BY ALL READERS THAT THEY HAVE READ AND AGREE TO ALL THAT IS SET FORTH IN THE DISCLAIMER AT THE BOTTOM OF THIS PAGE.


Monday, December 18, 2006

GOLD

Anyone who has either read this blog or is a client of mine, knows that I am not in agreement with the long term GOLD to the moon scenario. However, I trade shorter term than that anyway, so here is what we see as of today.

We have clearly broken the small uptrend off the lows from under $600. The declining line now indicates what the trend is, and it is down. RSI is also under 50, confirming this downward trend.

What to do next? Wait for a 3 or 4 bar retracement up against the downtrend to go short. If the market were to hold here and rocket upward changing the trend back to up, then buy the pullbacks. For now, however, it is short the upward flags against the downtrend.

If you take a broader view, we are really in a sideways market in general for the last several months here. As a result, you can always fade the range when we get to one side of it. We are basically in the middle now, in a short term down trend.

No comments: