Gold Technicals: Weak longs spoofed out yesterday

Gold

UPDATE 9:47- stocks are spiking. This might be a greenlight to buy Gold if they are repeating history at Jackson Hole. Easy money policy

Technical Report

After yesterday's early morning spoof lower Gold has held its own while equity markets drift sideways. Gold is firm and that makes sense given the likely liquidation over the last 3 days. The question remains, is it a dead cat bounce of short covering and/or weak players punting long this morning, or what we call investment grade money buying. Frankly we hope it is the former. Not because we are short today. We will be out of that well before Yellen speaks. But because of the confidence we have about this market as an investment, stated best here:

"We believe that any sell-off on perceived hawkishness from the Fed should be viewed as an opportunity to buy. Global central banks, including the Fed, will continue to pump funds into the system, until politicians step up with fiscal measures -- a scenario, that at best, is one year out. Expect volatility right up to Yellen’s comments and then a sharp reaction. A dovish posture should take gold back to the values we saw on Monday."- Peter Hug

-Gold Articles by Soren K

Why Gold Bulls Should Want a Rate Hike- Analysis

Gold

Yesterday's Sell off Negated.. so far

interactive Chart HERE

DEC GOLD Resist: 133280-1334, 134590* ST Trend: Down(132460) Supprt: 1316-1313, 1300+/- Obj: 1316- TRP: 1345.90Comment: The market is triggering a downturn from the congestion of recent weeks and targets a selloff to1316 with a chance to wash to 1300-. We may see minor corrective congestion in the lower half ofWednesday’s selloff, but tight congestion should bear flag. A close over 134590* is needed to trigger areversing turnaround.

Yesterday's Selloff Analysis: We like being right. It happens so seldomly

SEP SILVER Resist: 18875, 19055-1909 ST Trend: Down(1849) Supprt: 1840-1836, 18165-1800 Obj: 1840 TRP: 1972.0Comment: The market is in a downturn and should reach for 1840. A close under 1836 could add a washalong 1800+/-. Any minor rebounds or corrective congestion will likely stall inside Tuesday’s sideways day.Narrow congestion should bear flag and setup for selloffs. Only a close over 1972* triggers a reversingturnaround.

Bottom Line:

A close right here would not be a bad thing. If we did close here, then look to a blast off tomorrow which would confirm a candle formation similar to a Morning Star. But if we settled right here, and tomorrow didn't trend strongly higher, then we'd be in the bear flag camp. EDIT: Either way, we are out of our VBS short trade now for a tiny loss. As macro bulls we are just "feeding the gods" as they say. Comments appreciated.