In the gold market, if you were to close just as you are right now, this exact moment on a monthly basis, which you're not going to its first day of the month, but that would be a new all-time high. You are not there on a weekly chart. You'd have to go back to $2937.60, on a closing basis, to be at the all-time high. And from where you're at right now, that's $50 away—it's not a small move.
What held the market back was that you kept hitting the upper Bollinger Band. Markets only stay over that algorithm five percent of the time. As a market runs, it eventually stops hitting that band and backs away, and it goes into what we call a pause or a correction; maybe that's beginning right now.
If you close by Friday under 79, then the odds are the market's going to break down. The odds don't favor that because it's so far away, but it can happen.
About the author
LINN & Associates
Over the past 35-years Ira Epstein has developed a reputation for providing clients with easy to use technology and teaching good old fashioned trading know-how. A number of our brokers have over 30-years trading experience. No matter how technology changes the methods of entering orders, there's no replacement for having "been there and done that before". It's the blend of services that brings things together.
Be it education, market information or trading platforms, we provide solutions.
Ira began in the futures markets in 1969. Over the years he worked his way up, starting from the ground up as a "floor runner" culminating with his becoming a Floor Trader. In the mid 1970s Ira decided to make a career shift within the industry to develop both retail and commercial based clientele. His customer base grew to the point whereby in 1984 he founded "Ira Epstein & Company", a trading firm specializing in retail, commercial and self-directed discount futures trading. Along the way Ira became a leader in trading technology out of necessity, due to increased small lot trade volume. He was among the first to embrace the Internet, which as you know has dramatically changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos", which can be viewed on our website, through Market Center, Linn-IraChart Software and on YouTube.