Tuesday October 29, 2013 08:45
The market breached our $1,355 level yesterday but ran out of steam in the low $1,360’s, settling to an unchanged look by the close. I suspect some of the strength over the past few days has been a trade to cover short calls on the options expiry this week, but the technicals continue to look constructive, unless the $1,325 level is lost. If this is a true bullish impulse wave, the next break above $1,355 should carry more momentum. Gold has moved up over $100 in the past two weeks. I find it interesting that none of the perma bulls having been screaming about new highs. It may suggest they do not yet have the conviction, which indicates the rally may not be over. Once the unified voice of $5,000 gold becomes more pronounced, I’ll be on the other side. Until tomorrow’s FOMC announcement, the market will be skittish with traders taking quick profits and leaning towards a flattish position into Fed day.