You can see the gold market is up $59 this week up, nearly three percent. The market as I said, you're at a point where you've been up so much that for no reason at all other than it needs to give you a correction, you could see pullbacks in this market. It's on in a still – this is called a breakout of this trading range and if you look at the Bollinger Band, you're now fighting it at $2159.70 to get under that number.
You've had four settlements in a row over it, there's no magic here, but if you go back and count how many times in a row in the Futures markets, you close over under a Bollinger Band on the lead contract (I'm not interested) far back months. Five often is about the number. And the fact that you've done four is often not a sign of weakness; hitting the band once or twice and then pulling back is common...but getting over it and staying over it that much. That's not the common thing. It's often the sidings of a breakout I explain that on day two here.
About the author
LINN & Associates
Over the past 35-years Ira Epstein has developed a reputation for providing clients with easy to use technology and teaching good old fashioned trading know-how. A number of our brokers have over 30-years trading experience. No matter how technology changes the methods of entering orders, there's no replacement for having "been there and done that before". It's the blend of services that brings things together.
Be it education, market information or trading platforms, we provide solutions.
Ira began in the futures markets in 1969. Over the years he worked his way up, starting from the ground up as a "floor runner" culminating with his becoming a Floor Trader. In the mid 1970s Ira decided to make a career shift within the industry to develop both retail and commercial based clientele. His customer base grew to the point whereby in 1984 he founded "Ira Epstein & Company", a trading firm specializing in retail, commercial and self-directed discount futures trading. Along the way Ira became a leader in trading technology out of necessity, due to increased small lot trade volume. He was among the first to embrace the Internet, which as you know has dramatically changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos", which can be viewed on our website, through Market Center, Linn-IraChart Software and on YouTube.