By Jeff Pierce

A McClellan Oscillator barely clinging to a positive close,  a diamond topping pattern forming on the heels of a major run being forced upon the market by the resolution to the Fiscal Cliff –> markets feel toppy, bottom line. I continue to stress booking profits and reducing long exposure at this time until new highs are made.

INDU

 Negative divergence

spx

Gold is in a wedge right now with support holding but it’s impossible to say which way this chart is gonna go. My best guess is down because that’s the prevalent trend and I personally think Gold is going to revisit the $1200’s before it makes new highs. Before you call me crazy I was saying Apple was going to see the low $400’s (and possibly below that) when it was in the 600’s.

gold

5 Responses to “Diamond Pattern Forming In Dow”

  1. Thinksmart Says:

    I don’t think the market have a lot more to go upside with what we know (macro, earnings etc….)

    And probably at this point, the reward is more on the downside.

    BUT don’t fight the trend…

  2. Allan Says:

    Agree on gold and agree on DOW,

    GDX has been collapsing for months and has not been confirming the move higher in the broader market or in gold when it run up after QE4.

    People need to ask why it is that global gold shares are declining if we are going to see a inflationary melt up.

    My answer is that we are not. In fact they are signalling quite the contrary just as they did back in 07/08

    Cheers Jeff

  3. jeff pierce Says:

    Agreed. Something is off on gold and I can’t put my finger on it. Long term is up, but all other time frames are in jeopardy and I think we need some sort of “significant sell off” to shake out the permabears.

  4. jeff pierce Says:

    BUT don’t fight the trend… <– so true

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