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DOW’s ugly candle + $GOLD | 6th April 2017

DOW’s ugly candle + $GOLD |  6th April 2017

The Dow Jones printed a truly grotesque reversal candle…

What the above indicates is that a rally attempted to continue, however, the selling power overwhelmed the initial attempt.

 

The market rallied on the ADP Employment number…but tumbled on everything else…

 

Pretty much the constant stock market rallies need to come to an end if the economy is not going to sustain earnings.

 

That’s worrying for all non safe haven assets:

 

Worry is good for gold:

Now bear in mind that in a few weeks we not only have the French Elections…. but also the US Government running out of funds on April 28th.

 

So plenty of upside potential for holding gold and gold stocks.

My entries were at or near support for most gold stocks, so I’m happy to let them run if they wish to do so.

 

BLK:

Potentially  we’ve caught the bottom on BLK.

A stop loss at 36.5c would be reasonable.

RMS is doing well.

 

MOY is frustrating holders into selling…. not concerned at this stage unless there is news that I’m not aware of.

Think Better. Trade Better.

 

| the Merchant

2 Comments

  1. Leo

    What impact will there’s be for gold, with Fed planning to unwind 4.5 trilllion off the balance sheet?

    Reply
    • the Merchant

      It’s positive for Gold. And there’s no way they will be unwinding. The government will lose its only method of raising cash.

      Reply

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