Another Dead-Cat Bounce For Gold
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Last week was an interesting one for the markets, as equities and gold bottomed for the week on Wednesday and have been rallying since. Both bounced from solid support and oversold conditions. Both are much higher this morning and should fail within a couple of percentage points from here.
Nothing in the markets has changed and as we have warned, there are going to be amazing rallies that look so good you will be upset you are not in; those are the rallies to be sold in these conditions. Look for a solid resistance level, set a stop and play the short side of the market.
The key levels to watch in the equities are 25,500 and $1,365 in gold. Until markets close above those levels, they should be sold. The recent rally appears to be a dead-cat bounce in oversold conditions. The dollar and the VIX hold the keys. If they rally, markets are going lower.
Keep those stops tight.