So, the gold etf, GLD, has a candle floating completely outside my 30-period Bollinger Bands, RSI looks on track to negative divergence, volume isn’t confirming the new highs, and… what else? Hmmm, what was that other thing? Oh yeah, it’s gone parabolic!
Now, the first word that comes to mind is “Bubblicious”.
We should call this summer the Watermelon Wave.
But check out the similar action in late-April/early-May. GLD corrected back to the 34-MA, held support and took a breather for two months before moving on up again. So, this might not yet be the end of gold.
But, if gold’s coming down, then wouldn’t that mean a rising Dollar? And wouldn’t a rising Dollar mean a falling stock market? A quick look at UUP doesn’t show any strength yet, and the Indices…well, they’re all over the place.
I’m trying to find individual stocks that show promise, but it’s tough. There’s a few prospects, and I’ll share those if I start liking them. But, overall, I see downward pressure as the predominant force in just about all equities right now. Let’s see if the Indices can hold support, the S&P has made a good line at 1,119, but the ultimate line is at 1,101.
Good luck, and keep those stops tight!
