Equity Rally Continues; Gold Fails To Break Out
U.S. equities are trying fortheir sixth consecutive up day, cutting the panic losses in half. This rally isabout a phony as one can be, with the fear of missing out driving this markethigher. The debt is mounting, as is the U.S. dollar manipulation, which islending support to some of the commodities, especially gold.
Overnight gold attempted to breakout above the recent highs but failed. Gold is on a five-day rally since makinga low at $1,309. Expectations are this rally will fail and a test of $1,300will be next. The current rally appears to be driven by short covering. Theonly support to this rally is the cheap dollar and the excessive shorts.
Our expectations are for anequity and gold sell-off. The recent lows in both gold and equities are indanger of being violated. This rally should fail, and an acceleration back tothe lows is on tap.
Contributing tokitco.com
Follow @Bubba_Trading
Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.