Just a quick update here. I don’t think I’ve ever seen such dead, dull markets. One study I just read said the stock and commodity markets are the tightest, dullest, least volatile markets in over two decades!
But it’s also the calm before the storm, before many markets breakout into profitable, trending ranges.
Yesterday was interesting. Strong Industrial Production numbers sent gold up to the $1,363 to $1,370 resistance area, but then gold immediately reversed, falling over $16 back to finish the day around $1,342.00 (December futures contract, now the most active).
Silver has a similar pattern, spiking high, then giving up all its gains and more.
As I pen this issue (3:49 AM EST), gold is down over $7, silver over $0.12.
Meanwhile, the Dow Industrials keep flirting with my major number, 18,500.
Overall, ALL markets are coiling up like a spring. Today at 2 pm we have the release of the most recent Federal Open Market Committee (FOMC) meeting notes. I’m not expecting any surprises, but if there is to be one, it will probably hint at a rate rise in September.
Hold all positions and related stops and stay tuned. Something big is afoot!
Best wishes,
Larry
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