Wednesday, June 26, 2013

Another Grinder

Let's look at gold first today as it was in the news with yet another decline today.



2nd day of ES gap up and grind.  Overnight launched with the European opening and spiked hard without looking back. Today's session was a bit more balanced but it featured (just like yesterday) a slow morning move down and then that distinct, slow, methodical, steady, grinding action higher so characteristic of this 5 year bull market.  Left to their own devices, the programs operate in this fashion, over and over -- and over.   That, or it's just Government manipulation!

So, two scenarios for tomorrow..and it's going to be one of these two most likely:

1) "The grind" up is back.  Buy the morning pullback (if any) and watch out for inventory adjustments lower if holding for bigger targets.

2) Selling re-enters the market and these grinder days offer no support whatsoever and POW!  They get taken back quick.

If sellers are in charge we should get #2 tomorrow or Friday.  If not, then, firmly back into the range we go.

Notable divergences in small cap issues today.









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