We had a sell signal yesterday, which returned 2200 points !
Now for some longer term references.
In one of my earlier posts, exactly a month back, I had posted a chart with Gold then around 1520 and projected new highs for the year.You can find that chart here
At that point , I had projected 1800 as a target for longs.Well we have reached 1782 on the COMEX and even I am surprised as the fact that we are there in one month!
But what is more surprising is the way in which retail traders are jumping on the gold bandwagon, ready to take a ride to their "city of dreams". Newspapers , TV channels( not of the business kind) and gossip magazines seem to be discussing this newest investment find.
I'm scared for the small trader who is jumping aboard now, egged on by investment banks and brokerages who are promising more ahead. It's a different matter that none of these people talked the high numbers when Gold was actually bottoming.
Let me take you to another chart in the commodity space
Most Silver investors would remember the big move of silver which doubled in price in 3 months. Quite a few of them are still waiting to exit out of their losses now.
What happened with Silver earlier will repeat now in Gold.
Folks, parabolic moves never last. Markets do not remain stretched.That Silver Order Flow chart posted above is a great indicator to the divergence at play in Gold- Silver today.
I told my trading room earlier, that I want to have none of the next 50-100- even 150 point rise from here, because the fall will be very painful. There are plenty more other swing opportunities in the market to look at !
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