GOLD CAPER ABOUT TO END?
Here is how things currently look in Gold. I have written ad nauseum in here about how fundamentally this speculative blowoff is about to end. I have been wrong so far. However, I have stated that when you get an irrational move driven by small speculators it is very difficult to time fading it. We are at a juncture now where it is time to be looking, here is why.
First, we have a 3 point divergence forming in the Oscillator at the bottom. These are often present at major market tops and bottoms. Second, the ADX has recently gone over 70, another measure of an extremely extended market. Third, we have reached a Sequential Sell signal, which is a method of identifying major tops and bottoms created by Tom Demark.
With all of this in play with a backdrop of record small speculator longs and commercial short positions, this is a spot to look for an entry on the short side. Ironically as wrong as I was about calling a top last month here, I have made money shorting Silver in the trades I have done, one being one of the best of the year for me. I also stated long ago, that all I really care about is how much money I make or lose, predictions are for cocktail parties. You have to learn to be able to accept that no matter how good you are, predicting market turns on exact dates in advance is very difficult.
This is a specific setup now that says look for a short entry with whatever techniques you use to enter and exit. I will show my trades when I do them. I am not shorting yet, even though I am very tempted.