The markets are pingponging around like crazy. Then again, it’s Friday. Gold just did a +0.5% to -1% turn in an hour, ending -0.5%, and the euro is lower against everything. Below 98 yen, and was less than ten pips over US$1.27.
The euro is in no-mans land, and maybe things will slow down a little bit before the 12.615 level, but I just have to pass time during the weekend to find out. Anyhow, 30% of my 250 pip call done in one day, not bad! Ignore Greek and Hungarian noise. Seriously, nothing that a thinking person couldn’t have figured out 3-6 months ago, and since there’s been absolutely no reason to adjust the prognosis.
Gold? Well, it reversed after hitting US$1631/troy oz, trading above its 200D SMA for all of 1 minute. I chalk this down to round number main street idiots reading Roubini et al. It promptly doubled back slowly, met resistance at the 20D EMA at 1620 and took it out with a cascading break. Still interested in seeing how long the 200D SMA’s can hold out for given the EMA picture, and the recent EURUSD-Gold-USDJPY correlation break effect seems to favor a stronger gold price, and flat to strong yen.
My cash is sidelined for a while, it’s still good for buying popcorn early next week to see where this ride goes.