RE: What I am most excited about and then I will shut up, is that the overall market had a terrible day and overall market sentiment is down. That gold went up on negative news, and thus was not seen as a "risk asset" but rather a safe haven of sorts, and an alternative to bonds. And that instead of gold stocks falling with the overall market because they are "stocks" they rose in a countertrend to the overall market because they produce or have something valuable, namely, GOLD.
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As I said before one usually see's a bit of a sell off in POG after such a big move in one session .. but that didn't happen? Seems the shorts were covering see below..
Friday morning's gains in gold come on panic short covering (the buying back of previously sold, or short, positions), bargain hunting and solid fresh safe-haven investment demand. The weak U.S. jobs data combined with the very uneasy status of the European Union and a weakening Chinese economy played right into the hands of the gold market bulls.
Now on a day like this we had most of the Jr's going the opposite of the market.. and tagging along with POG... I have seen this before and hope it does not happen Monday that the market goes green and the traders take some profit off of the Jr move and they sell off... for this reason I like to have my blocks in cash over the weekend .. but I didn't see POG pull back at all and some of the Jrs I was trading held up .. KGN even tick up right to the close? So I filled up and gambling that the run will continue and maybe join the market if it gaps up.. but one will have to have a fast trigger finger if we see POG pull back ... it could honestly go either way.. we all hope this is the real thing but we have seen these bumps before and could be just over reaction to the job #'s .. but blowing through 1600 was huge.. you have to think that our luck has to change sooner or later and I think next week we find out..
Technically, August gold futures bulls gained fresh upside near-term technical momentum Friday as price action scored a big and bullish "outside day" up on the daily bar chart--whereby the high was higher and low was lower than the previous session's trading range, with a higher close. Gold prices are also closed at a technically bullish weekly high close on Friday. Bulls and bears are now back on a level near-term technical playing field. On a longer-term technical basis, the gold bulls never lost their overall technical advantage as prices are still in an 11-year-old uptrend from the 2001 low of $255 an ounce. A three-month-old downtrend on the daily bar chart was negated with Friday’s strong gains. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the May high of $1,674.30. Bears' next near-term downside price objective is closing prices below what is now psychological support at $1,600.00. First resistance is seen at $1,640.00 and then at $1,650.00. First support is seen at the April low of $1,616.30 and then at $1,600.00. Wyckoff’s Market Rating: 5.0