Gold hammered as
@Seth Davis COT analysis had suggest as a strong possibility. TA, it was a triple top potential at the time so the odds were against the bulls and I was still hoping for the bullish momentum generated by the CPI data to finally push through but alas it met a wall of resistance!
1322 has to hold or I "see" the next pit stop sliding all the way back to 1300 psy level. A bit of token comfort with the AUDUSD also sliding as I had expected straight after yesterday's RBA minutes suggesting that rates were on hold for the foreseeable future. Some potential time bombs for interest only loans taken out punting on SYD/MEL property boom before the era of macro prudential constraints. Those loans whether they face honeymoon periods is outside my knowledge of property sector but I can see some parallel to the GFC conditions brewing and RBA would be treading a fine line on the IR hike front.
I was looking to short AUDUSD if it continue to rally into the resistance circa 80C but decided to play AUDJPY off that massive reversal signal lastweek.
At times like these, it pays to be holding quality than bottom trawling cheapy goldie. That USDX chart I posted a few days ago on the reversal off RSI divergence is now taking hold.
Looking to the heaven magic ratios, Dow/SP500 hit the 61.8% fib retrace almost perfectly last Friday and now mounting a profit take sell off. Our SPI200 followed suit (61.8% fib) but the divergence has been noted as the bulls continue to try and push through currently the 3rd attempt consecutively. I have been expecting another sell off in the stock indices to form at least a double bottom before status quo can maintain and will be very surprised to see a V shape recovery. Possible as I never assume anything.
@Lurkin was asking me why I am skirting on conviction and this is the reason I held back from buying some great entries especially last week!