Lousy Jobs, Gold Rallies Big.What did Friday’s rally in Gold and Silver mean? By Todd Horwitz, Bubba Trading

 

What did Friday’s rally in Gold and Silver mean? Was it the lousy Jobs number? Was it the weakening economy or global weakness? The rally was as simple as the market were oversold, looked like they found support at 1280 and bounced.

Many experts will try and give you numerous reasons as to why there was a rally, but the rally was an oversold bounce from support and nothing else. The metals found support around 1280 last Monday, consolidated and bounced, it’s that simple.

The bigger question is now what? Our expectations are another retest of the 1280 area and more consolidation before deciding the next big move. We expect the next move to be higher however we don’t expect from here. The healthiest action would be a churn for a couple of weeks followed by a move up.

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.