Nice Trade – get out of it now, LOL. There is huge divergence on my proprietary measure of insider buying and selling and the commercials have gotten short. A decline is imminent. Both of these are shorter term things so they do not mean Gold is going to $400. However, I am looking for a short entry right here. I am going to be trying to dial this in a bit better as seasonally prices are typically flat here, so this is not a loaded trade.
We are riding a momentum move here so no telling how far it goes, as it is not based on fundamentals at this point. I will probably wait for a trendline break of some sort so as not too just fade the spike as that is a guess. But due to what I said above, the insiders have gotten out of their longs recently.
This is the beginning of a setup for it to go the other way. I need to look at sentiment and a few of my patterns to see if there is a good play here. If I short it I will let you know, but no way would I go long right here, NOOOOOOOOOO WAYYYYYYYYYYYYYY!
