Gold and equities see huge reversal overnight
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Friday’s late-day collapse in equities and gold’s rally continued into Sunday night’s opening; gold spiked to $1,565 and now is trading at $1,535. Equities were down almost 400 and are now up 300. This is the type of action we regularly write and talk about.
In most cases dramatic movement in either direction is more often than not met with buyers or sellers and typically will revert to the mean. This is the action we are seeing this morning. A huge rally in gold and a selloff in equities; both have reversed and reverting to the mean
The big question from here: what does the trader and investor do now? Everyday we talk about the footprint and the patterns that are created in charts indicating support in gold at about $1,520 and resistance in the Dow at 26,200. These overnight reversals are common and create more opportunities on the reversion to the mean.