I have put together a short video showing you how I see the market and what I think is likely to happen this week for gold, stocks and financials. But here is my Cole's Notes version in case you cannot view the video.
- Long-term trend is up and I am currently long gold but feel a sharp correction could happen any day.
- Price/Volume action on gold is bearish short term.
- We took some money off the table on Friday into the strength.
- I am protecting my long position using a stop around the $1,240 area.
- I still like gold and hope it rallies, but if it turns around I will be in cash until the correction is over.
- SP500 is currently oversold after its four day selloff
- This index is trading deep into a support level
- Financial sector and GS (Goldman Sachs) tend to lead the market and they performed well on Friday.
- I feel the SP500 index is due for a solid 2%–3% bounce and possibly a 4%–6% rally
If you would like to get my detailed trading analysis and trading signals, please visit my website: www.TheGoldAndOilGuy.com.