Tuesday, March 25, 2014
And as for gold
As for gold, this morning it just took a run at $1300 but turned back up.
Ukraine isn't over, the bond markets have had their two day freakout over Yellen, Indian election season is still happening, China gloom has clawed back into the lamestream media, and OpEx has passed.
So at this point I would expect to see gold stabilize.
If it pukes below $1300 today, it has no good reason left except that the market has given up on it. Go away, the market will remember getting burned for a long time.
If the miners underperform gold to the downside, it means the big wave of money that bought the fad in mid-February still has to get out.
But look at this:
God-dayum! If that big red bar from yesterday doesn't look like capitulation volume, my name's not secretly Mila Kunis.
We'll see what happens today.