As you take a look at gold, you had a spike last weekend, you followed through. So the logical thing is to say that you’ve made a trade top of sorts. The second part is the market had buckled under the other day…
And now you’re right here for the Friday trade, so you’re getting a bounce. Look at the lower highs, lower lows. Where did the market go? It went to the 18-day average—and I’m going to back up here for a minute. That’s the first hit of it. You closed down, and now you’re coming up, and it wouldn’t surprise me if you want to get back and play at that number.
While the trend is down, trying to go short at $3271, the nearest stop that makes sense is $3359—right over that. That’s too much money to risk on the downside. If the market keeps falling apart, wherever the Bollinger Band comes in—right now, it’s at $3058—that would be about a 15% break from the high. [It] could happen, I’m not expecting it just yet.
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