Gold exploding, 1400 is here – By Todd Horwitz, Bubba Trading.

 

Posted 9:25am

For days we have written about the consolidation pattern that gold was trading in and that if the metal could close above 1350, 1400 would be next. In less than 12 hours gold has closed above 1350 and overnight almost got to 1400.

This morning all markets are exploding higher, not only is gold up almost 40.00, Silver up .40, Crude up 1.50, Bonds up 16 ticks and the Dollar getting slammed. Obviously, the markets love what the FED had to say on Wednesday.

We expected this action but not quite this fast. We would expect the equities to reach new highs and the metals to continue higher. However, don’t be surprised at a big pullback, this action is too fast and furious which will lead to selling pressure. We won’t try and pick the top, but we will look for opportunity to buy on pullbacks.

When markets explode like this it will take a couple of days to establish solid entry levels. If you are long protect profits, if you have been waiting don’t chase the markets here. Be patient enough to wait for the best levels to enter.

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.