Goldtent TA Paradise

Trader Dan : Caution

1. pedro_deleon says:

   April 4, 2016 - 2:35 pm at 2:35 pm

   “The problem for gold, in my view, is that you have a large number of STALE LONG positions in this market. With traders these days having the attention span of a gnat, there is the risk of impatient longs beginning to throw in the towel. That would precipitate the selling avalanche that is possible when a market becomes this lopsidedly crowded on the long side.”

   Always appreciate Dan’s posts.
   The concern he expresses above is certainly legitimate in my book.
   However, consistent with my recent remarks, I still see another leg up to complete this move before that risk materializes.
   Its quite possible that the correction that’s been ongoing will be a messy type of wave 4, and difficult to pin down.
   But once its done, my work still suggests one more rally … along with energy sector, RSX, etc.
   I’ll be watching for double tops. Either way, I suspect bucky up resumes in earnest and all hell breaks loose from there.
   That’s all still a number of weeks to several months off, best as I can read things right now.