Anything More Than a POP?

Let's start with the trade in Gold from the early morning on Tuesday. Exciting to see first thing in the morning but quite frankly I am finding it hard to get excited. Have a look below

Early this morning before the NY open, Gold exploded through the 1585 resistance and you probably thought we were going to have a great day and thrust above 1600. It sure looked that way to me around 7:30 this morning but as you can see by the chart, Gold never touched 1600 and was capped for the rest of the day. If we stay above 1585 through tomorrow morning, maybe some shorts will cover and we shall see if we have gained some upward momentum for a change. Sorry not to sound so upbeat, but I was disappointed with the price action for the rest of the day. Oil was up big this morning, along with the Euro,Aussie and just about every commodity on my screen and Gold had no follow through. That is what I saw!

Did you notice how the Equities were down just about all day but they did manage to pop into positive territory to finish the day? Heaven forbid if stocks close in the red,haha. the liquidity works for equities but not for gold. Did anyone notice the US TReasury Markets today? No charts on Bonds today, but my suspicion of the INVISIBLE HAND coming into play was evident in today's action. Let's see what happens the next few days.

Tomorrow we will get a look at US Retail Sales, will the payroll tax put a dent in this number, or is the US consumer blindly spending to support this growing economy. I cannot wait to see the reaction in the markets to this number, will the correction in Stocks begin in earnest tomorrow or will we keep marching on? From what I can see from other markets, the rally is coming to an end and things should start getting dicey. I want to post a chart on the US Dollar, I am expecting the dollar to fall but at this point in time I just do not see it going down, I can see possibly 84? In the meantime I like treasuries to the upside and am anticipating a fall in equities.

Let's see what tomorrow brings and how much movement we get out of the markets, it sure has been too, too quiet for me! Just remember how tightly Gold traded yesterday and look what happened today. The stock market sure has gone up a ton to start the year, up one baby step at a time, will it take the elevator shaft down? Be on your toes guys and gals!

Good Day!