Equities Have Topped; Gold Is Confused
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Featuring views and opinions written by market professionals, not staff journalists.
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Based on market action, the equities have topped and the start of the correction has begun. The technical action has been bearish with rip-your-face-off rallies that fail to take out the previous highs. Markets that are topping are very volatile as investors try and buy the dip, which continues to fail.
Gold and silver are now in their sixth week of consolidation, churning back and forth, making double tops and double bottoms. Congestion is just confusion; traders are split between buyers and sellers. Gold is in that confused state between $1,300 and $1,365. New money buys near the bottom end and new money sells at the top end of the range.
Equities are setting up for a big correction that has already begun, but no one believes that these markets will go down. The pundits are very convincing that this time is different, but of course, itâ€™s never different. Gold and silver will eventually break of this consolidation pattern. Our guess is lower first, which will create a buying opportunity.