By Jeff Pierce
Gold Should Pullback From These Levels
Important Charts To Review
Uninspiring Three Line Break Charts
why sell now? every dip is being bought and then some.
for the simple reason when the dip doesn’t get bought it’s going to be brutal. I think everyone is on the side of the fence that thinks every dip is going to be bought (including myself) and there will come a time when the masses are wrong so it is important to be careful.
I closed all long trades over the last hour, and with the profits, have went long on puts of the 3x bulls and vix/spy. I went out to June, and got pretty close to the spread, $1 or $2 out of the money. Theta is so low that I can ride these for three weeks and see what happens– if I am wrong will close them out and lose half at most. I think a gamble would play the May’s, but I go with the backup plan.
My reasoning is the astrological eclipse that involves the south node, Taurus-Scorpio, and the transits therein. Something is gonna flip this. Might not be until the week of the 20th, might be a week earlier or later. I just got a feeling of panic today to close out and take the other side while the volatility is so low as to make the risk worth having for a few weeks just in case. If I am wrong I will take a hit off half the year’s profits and wait for another trade.
Merriman has a lot on the reversal:
But he also says this could last till July. That wouldn’t surprise me either.
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