GJ playbook;
GOLD; Read "3" in message this replies to. Went to bed last night watching gold flirt with my 1308.7 level .... would have taken the short in previous times but also saw US likely to gap down & the old "flight to gold " in times of "risk on" hit me. So gold kicked up (not much) and is now just below the downtrend line formed from highs on 1, 2 and 6 Feb. Solid close above that line and I say 1324.75 next stop.
US indices
After reading PB "inside day" call yesterday I did not check my charts until late last night; not only inside but I saw lovely Haramis everywhere.
From Steve Nison; Japanese Candlestick Techniques: (got me reading the Harami chapter again; great read!)
The harami formation is comparable to the Western inside day. An inside day occurs when the highs and lows are within the prior period's range (see Exhibit 6.2). Yet, while a Western inside day is usually thought of as having little, or no, forecasting importance, the harami pattern predicts that the market will separate from its previous trend. While a Western inside session requires the high and low be within the prior session's range, the harami requires a narrow opening and closing range (that is, a small real body) to be within the prior wide opening and closing range (that is, a tall real body).
Thats what got me so interested last night when I saw on IG that US likely to "gap down"; all looking very ominous.
SPX Resisted at MA200 as well.
A few issues with the indices that stop perfect storm for things I watch are ;
1. Dow actually supported o/n at MA200
2. RSI is NOT particularly high (I dont like term overbought) & NO sign of divergence (my favourite use of indicators)
3. Gaps that PB referred to; never been too worried. many significant highs and lows on charts leave gaps IMO.
(20min delay)