.........XAU Triple Top And Big Dumb Money Spike?
The very brief spike at the open was probably a dumb money spike in which NEM rallied toward it's Cyclical Bear Market downtrend line in place since 1-31-06, see http://finance.yahoo.com/q/ta?s=NEM&t=1y&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c=. NEM spiked/trended up all of 15 minutes after the open and will probably trend down the rest of the session. The big spike at the open could be the last gasp of the short term upcycle since last Tuesday.
The gold COT (Commitments Of Traders) data (http://www.cftc.gov/dea/options/deacmxsof.htm) pointed to some strength this week since the Commercial Traders traded net long and the Speculators traded net short, but, the non contrarian gold Commercial Traders made what borders on an unusually large long trade (close to a 10% increase in their long position) that portends weakness.
The bottom line is that this is probably a typical very brief dumb money spike in which reliable lead indicator NEM rallied toward it's Cyclical Bear Market downtrend line in place since 1-31-06 and not something to get excited about. ....... http://www.JoeFRocks.com/
The gold COT (Commitments Of Traders) data (http://www.cftc.gov/dea/options/deacmxsof.htm) pointed to some strength this week since the Commercial Traders traded net long and the Speculators traded net short, but, the non contrarian gold Commercial Traders made what borders on an unusually large long trade (close to a 10% increase in their long position) that portends weakness.
The bottom line is that this is probably a typical very brief dumb money spike in which reliable lead indicator NEM rallied toward it's Cyclical Bear Market downtrend line in place since 1-31-06 and not something to get excited about. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
7:14 AM
