I maybe on my holidays in the highlands of Scotland but I had a chance to look at the odd chart. Earlier this week I drew attention to the gold price coiling up into a tight triangle pattern (click this hyperlink to read that piece).
I hadn’t expected it to explode so soon but I see that it did that a couple of days back. Take a look at the chart below.
Its broken strongly south this week and headed back down towards the $1250 area. Keep an eye on it in case it continues down to the 2013 lows.
Trade well
Paul
May 31, 2014 at 5:34 pm
It’s interesting that as soon as there is a downward push, the retail crowd starts going bullish. As at the end of Friday there were already 2.7 long FXCM retail traders for every short one. [And conversely there are 10 short retail traders for every long one on the SPX, as it continues to make all-time highs!]
June 3, 2014 at 5:13 pm
That tells you all you need to know about uneducated retail traders. Always trying to pick tops and bottoms of markets. I prefer to be alert, watch how price action plays out, wait for the market to play its hand and either trade in that direction or stand aside completely.