In The Morning Line (see above), I characterized as imbeciles and knaves those who chased stocks higher Wednesday on the latest non-news from the Fed. However, we shouldn’t overlook the fact that these same dolts and broad-tossers threw enough money at gold in the space of an hour to cause its price to spike wildly. Should we be worried? Not if my respective forecasts for stocks and bullion are correct. I remain cautiously bullish on the latter while looking for a potentially important top in the broad averages as early as today. From a technical standpoint, I’d suggest using the pattern shown to trade this ETF, either with stock or options. It has been confirmed by the pause almost exactly at p=120.60, and a decisive move past it would portend more upside to at least 122.22, or possible even 123.85. As always, an easy move past any Hidden Pivot implies the trend will continue. Meanwhile, p, x and D can each be used in the usual ways to get long or short, or to exit a trade.
