The Technical Traders View on Gold, SPX and Financial (GLD, SPY, GS)
It was a non stop sell off last week in equities as the SP500 sold down 4 days straight with a small move up on Friday. While investors were cashing out of stocks, we saw that money move into the big shiny yellow safe haven – Gold.
I have put together a short video showing you how I see the market and what I think is likely to happen this week for gold, stocks and financials. But here are my Cole’s Notes version incase you cannot view the video.
- Long term trend is up and I am currently long gold but feel a sharp correction could happen any day.
- Price/Volume action on gold is bearish short term
- We took some money off the table on Friday into the strength
- I am protecting my long position using a stop around the $1240 area
- I still like gold and hope it rallies, but if it turns around I will be in cash until the correction is over.
- S&P500 is currently oversold after its 4 day sell off
- This index is trading deep into a support level
- Financial sector and Goldman Sachs (NYSE:GS) tend to lead the market and they performed well on Friday.
- I feel the S&P500 index is due for a solid 2-3% bounce and possibly a 4-6% rally
Watch My Video For More Detailed Analysis and Price Levels
Written By Chris Vermeulen From The Gold And Oil Guy.com
I am a full time daytrader and swing trader specializing in trading GLD, GDX, XGD.TO, SLV and USO. I provide my trading charts, market insight and trading signals to members of my newsletter service. If you have any questions feel free to send me an email: Chris@TheGoldAndOilGuy.com
This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.