Why am I still in cash? I’m appropriating myself according to the tenets of proper decorum, attempting to re-enter the market like a hero returning from the scourge of war. In the meantime, the overall condition of the tape continues to bore — which is likely a good thing.
As expected, basic materials are bouncing today with excellent participation rates. Exodus demonstrated a very low score for the sector last week, especially in gold. Bargain shoppers are diving back in today.
You’ll want to be out of this trade by the time that oscillator hits the high end of the range. In the interim, there are many bargains to scoop up here — following an 8% overall sector pullback.
I’ll wait just a little more for the broader indices to firm up before diving back in. I’m not bearish, at all — just patient.
Market breadth stands at 62% today — meaning we can go either way now. The recent bias has been to the downside. Let’s see if breadth can firm up into the 70% range. If so, we’ll likely rally into the close and possibly set up for a good week for traders.
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Gold is going straight to zero.
paper gold to zero, yes.
The only way gold goes to zero is when humans cease to exist.
No stops. Straight to zero.