Gold had a spectacular run the last two weeks, with only occasional pullbacks such as we had today.
Let's see if gold can hold together into its option expiration next week on the 26th.
Option Expiration Schedule at the Comex
"Where such a shift in power is in favor of the governing elite, Power will achieve its murderous potential. It simply waits for an excuse, an event of some sort, an assassination, a massacre in a neighboring country, an attempted coup, a famine, or a natural disaster, to justify the beginning of murder en masse. Most state sponsored murder occurs under the cover of war, revolution, or guerrilla war, or in their aftermath."
R. J. Rummel
Gold had a spectacular run the last two weeks, with only occasional pullbacks such as we had today.
Let's see if gold can hold together into its option expiration next week on the 26th.
Option Expiration Schedule at the Comex
Very quiet expiration for August stock options today.
Q2 GDP second estimate next Friday the 27th.
SP 500
The SP was under pressure all day, but there was a bump up in the afternoon to bring them back to the pivot point around 1070.
NDX
The NDX broke cleanly down out of the rising wedge, so there may be more work on the downside. Potential bear flag that we will have to watch.
Heard on the Street
05/24/10 Goldman adds CME to its conviction buy list. Closing price $323.01
08/12/10 Goldman removes CME from the list. Closing price $249.39
What are the chances they were not on the other side of that?
Gold has been like a juggernaut the past week.
Let's see if it can take out 1240 without getting too overbought.
As a reminder next week is September options expiration for gold and silver.
Gold Daily Chart
Gold Daily Chart - closer look
Stocks fell from overnight highs on higher than expected unemployment claims this morning, and a much worse than expected Philly Fed. But as one financial wiseguy said on Bloomberg, who cares about manufacturing? Probably does not care about jobs either.
A test of the pivot point support is underway. I would expect it to hold and perhaps recover after the Europeans have gone home to their folks and blokes, but if it gives way, which would be a clear break of the lower bound of that 'pivot channel' then its a new game, as they say.