Following SOX chart not dissimilar from DJIA/NDX charts (which are not available for free):
securitytrader.com^SOXX&ChartID=42495&ChartType=D
Weak volume, low vix, dis rally is doomed as in domed (H&S), play the next one in 3 months or 3 quarters.
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Fight going on around POG 300 tonight. But two years ago, if after a run up and with the asian markets, where much of demand has been coming from, were light or closed due to New Year (or another convenient holiday), the market then wouldn't have messed around with POG, IT would have been taken out behind the barn and SHOT by now.
In my view, the vivid memories of the last few years of POG being shot after a rally (Dutchies gold sales, Aussie gold sale, BOE gold sale, Swissie Gold sale, Kuwaitie gold sale, Any Third World IMF owin' country who has a few bars left Gold Sale, Yo MAMA's Gold Sale, ggg) are being reflected as the wall of worry for bulls.
This consolidation is very HEALTHY.
Initial POG target is 334, inv H&S off of weekly, neckline was at 294.
Nite all,
Roebear |
