NYSEAM:SVLC - Post by User
Post by
TRRGon Oct 18, 2013 11:42pm
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Post# 21829849
Short covering
Short coveringThe latest move up was short covering. Gold has moved back up to test the weekly 20 day moving average at 1326. Each time gold has crossed this average on high volume and high open interest, there has been a significant rally. However, this move up is once again on low open interest. The weekly continuation open interest is the lowest it has been in over 4 years. The dollar is back testing this range around 80.00. There is no way that equities can rise and the dollar sink, unless it is a trap. Either the S&P 500 is going to sell off 500 or more points or the dollar is eventually going to move up. That has been the long-term trend. Actually, this latest move up in gold has all the smell of buy the rumor sell the news. Could the news be the monthly labor report to be released 22 October?