Gold and S&P500 Part Ways

Gold was clearly rejected at its 50-day moving average on Friday to close almost unchanged for the day.  We really want to buy it here, but Friday’s gravestone doji candlestick coupled with the failure to move through the 50-day makes us a little hesitant. We will therefore wait for a decisive break above the 50-day at $1,740.

Also of note is gold’s divergence with the S&P500 since election day.  It appears the gold cat is morphing into a safe haven trade as the fiscal cliff looms transforming away from the monetary play of the past several months.   Gold, at least to us, has always been a weird cat with multiple personalities and more than nine lives.  And, at times, almost as difficult to chase.

We are also pretty beared up on equities, but hesitant to sell too much here because we (and most other traders) are so beared up!   Looking to sell strength.

(click here if charts are not observable)

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One Response to Gold and S&P500 Part Ways

  1. Pingback: Gold and S&P500 Part Ways - The #1 Resource for all Stock Market, NYSE, Stock Quotes, Latest Stock Exchange News on S&P 500, Nasdaq, Dow Jones. - Dow Jones, Nasdaq, S&P 500, Stock Market News

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