Wednesday, October 8, 2014

And WTF about gold and the miners, eh?

Just when I get out, they drag me back in!

GLD has popped above the downtrend's governing EMA, and has made it to the Bollinger mean. MACD is popped.

SLV not so much.

But this is weird:

GDX popped on monster volume. It's broke above its governing EMA, but it's the volume that really catches my eye.

Did a whole bunch of shorts just get burned?

I guess they figgered gold was going to that stupid Goldman target of $1050, so they all piled in short, and now they gotta cancel out. Pretty weak conviction among the shorts, eh?

And here's the juniors:

Again, massive volume, again the governing downward EMA was broken.

Try and explain to me, by the way, how some bullshit FOMC statement that they understand the downside risks to tapering is supposed to have any effect on gold demand whatsoever. Go ahead.

And BTG popped like a bat out of hell. From -2SD to +2SD just like that.

I dunno... look, this move happened at 2PM, so there was 2 hours of minimal liquidity available to cancel shorts, if that was what people were doing. So I want to see follow-through in the next few days, instead of longs taking the pop as an excuse to sell.

But if last week's gold price breakdown was a fakeout, if the break only happened because a bunch of fairweather shorts piled in last week and got the fuck back out this afternoon, then this could run the other way really fucking fast. From false moves come fast moves.

Boy is that dumbass Ritholtz really going to be fucking embarrassed, eh?

Disclosure: nothing really because I just got finished making fun of junior miners all week.

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