Friday, 4 May 2012

Gold....Ohh Shucks...It IS a dead cat bounce + S&P

After getting stopped out of my Gold position I looked on as we saw the market rally to 1647 for a restest of 1650...perhaps a retouch of the newly added fork....Anyway whatever line it was a retouch of , Gold is now in freefall and currently has dropped nearly15$ in the last 30 mins and we are back under the downsloping RL. Think of the candle/bar in a high TF such as the daily or 240min?
I hope you can see what i was aiming at-or what type of price action i expected-albeit on a much smaller scale and thought the high pivot would be around or just above the RL as per my trade. Anyway 'a miss is as good as a mile' as the saying goes and my old foe impatience is perhaps again to blame...
The bottom line is that todays price action in the S&P/Dow etc and the European Indices and Gold, Crude is a game changer in my opinion and we are back at the same short bearish scenario that i meused with back in very early April
The patterns now in the Dow and S&P are bearish again for the medium and perhaps the longer term and it looks as though the technicals may tie in nicely with the weakening fundamental picture again.
I intend to post some high time frame charts this weekend.
AS for the final word on Gold? No re-entry for me (ever) using the same setup after a failed trade so I am off soon to start the weekend. You should however watch this reaction line (from the blue horizontal fork P0 1662.98 6/March, P1 1716.43 on 12/March & P2 1612.22 on 4/april) ..
                                                                      YM M12 below

 and finally E Mini S&P
.If this blog illustrates anything it is that reaction lines are the most undervalued dynamic line tool in the traders toolbox.

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