The gold market had one of the wildest days of the year. I think it was a hundred-dollar range from high to low, and it did go crashing down.
When we look at the weekly chart of closes, you're well over that. So your bias is to the upside, you're looking to be a buyer. When we take a look at the daily charts, all right, you've hit your upside counts. I just got to tell you that there are many ways to do this in the chart, but suffice [it] to say, that you could just be looking at this flipped over from this point, which was $2050 to basically down here $1950. It takes you up to a $2150 number.
But you got to be careful when you look at all these – let's go to the next day because of what happened. The key moving averages, the trend is up. The bias is up. You're still over the 18-day average. However, is the trend up? What defines a trend is higher highs, higher lows...
Let's look at today's action. You went from $2152 to $2038, you took out the prior break low. You now do not have an uptrend, you have a higher high and lower low. You've gone to neutral and boy, what a range. Tell me you see anything like that on the charts prior to this and I think we'd both be laughing – you don't. And you can see what the market did. Why did this occur?
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.