Gold Rush blow off pattern. “..bullish in Gold since early June..still positive..However, this action suggests that a near term top is coming. By Todd Horwitz, Bubba Trading.

 

The runaway in in Gold rolls on, the breakout to the upside continues. This action as bullish as it looks is starting to look like a blow off to the upside. Suddenly price and time have become irrelevant and nothing is holding back the buyers.

We have been bullish in Gold since early June and are still positive on the yellow metal. However, this action suggests that a near term top is coming. There is no way to tell exactly when the rally will end but the price action now is more of fear and greed which typically signals the end is near on this leg up.

We are not predicting a top nor are we liquidating our longs. However, we do see reasons for concern as the bond bubble grows, the currency wars intensify, and buyers have now fear. Silver has been moving higher but is now starting to mimic gold and is accelerating too quickly. We are in understanding prices can continue to rise but are now concerned that a pullback is near

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.