I could be wrong due to my cognitive bias, but this feels like a shakeout. Big unexplained market moves before the FOMC? I find them hard to believe.
The amount of fear I’m feeling right now is consistent with other pre-fomc Shakeouts. Gold down a big ol ‘almost’ 10$ but miners and silvers wrecked today. Gold sill sitting comfortably above September high resistance.
All of Monday’s currency, SM and gold gaps filled. Likely continuation of the trends indicated by the gaps is not unreasonable.
Chart added is my Fib Fan 2011-2015. Monthly and weekly closes are above the final resistance level. We are still above the September high in gold. Though all the markets that trade off the price of gold are way down, gold looks technically strong until we get a close below September highs. A break above this level leaves no resistance up to 1800/1950. So naturally, even the bankers who are long gold want to shakeout as many retailers as possible for this trade.
I guess we shall either be pleasantly surprised tomorrow, or taught another lesson not to bet against the bankers.
Goodluck. Safe Trading. I remain long Jnug/GDX/Alexco/SILJ unless I see a Daily Gold close below September high of 1567.
