Monday, August 22, 2011

Big gap up... and down again!

Overnight, markets bounced hard, but with no important economic news out. So the best way to play the open, was to short it. Now, let's see if Friday's low (1119) can hold. So far, so good...

Edit (2 PM): we bounced to reach the 50% Fib-retracement from today's top to bottom (1133.75). That's where the rally stalls and we're back down to Friday's close.

Edit (4.20 PM): lots of chopping around in the last few hours of trading, no clear directional move. We ended near the lows (= Friday's low). Volume was substantially lower, tomorrow should bring more clearness, but I expect at least a test of the 08/09-lows.

Precious metals were up again (gold and silver both +2%) as well as oil, achieving a 2% gain.

Gold is now at record highs, just under 1900, only a month after breaking the 1600-barrier. The move is getting parabolic, but with volume nowhere as extreme as silver was in April. Who knows, we'll make it to 2000 before the bubble bursts. And if stocks keep going down, we could even go much higher than that.

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