Equities Hammered, Gold Lower. That can’t be Right – Todd Horwitz, Bubba Trading.

 


Another Monday morning beatdown for equities. This has become almost a daily occurrence; markets get hammered early spend the rest of the day trying to come back leaving the bulls with hope. This is the same pattern that occurs over and over again a market tops.

At the same time Gold is under pressure and threatening to break below the 1280 level once again. Many think that the pressure in equities would be good for gold which of course is wrong. Gold is not a hedge against equities it’s a hard asset that is in trouble of breaking down.

I can hear the chants of the pundits and gold longs, “that can’t be right” how can gold continue to go lower? The answer is simple, the gold pattern suggests lower prices and market correlations are not absolute at the time they happen. If gold breaks through 1280 on the downside the odds increase of seeing 1220-1240

Todd Horwitz
Chief Strategist
BubbaTrading.com

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.