A huge sell off today was triggered by Ben Bernanke's remarks to the US Congress, which traders interpreted as a signal that there wil be no more quantitative easing (QE) and that improved employment prospects were putting a different slant on thinking.
The massive wave of selling means that we are not in Wave 3, we will have to see how this sell off pans out, though we suspect this was actually the top of a larger Wave 1 and we are now entering Wave 2.
This price action is typical in gold, as we have highlighted many times before, and demonstrates how effective our strategy of trailing stops to lock in profits is in this market. We took another $35 to the bank today, making a superb $161 profit for the first two months of the year.
The massive wave of selling means that we are not in Wave 3, we will have to see how this sell off pans out, though we suspect this was actually the top of a larger Wave 1 and we are now entering Wave 2.
This price action is typical in gold, as we have highlighted many times before, and demonstrates how effective our strategy of trailing stops to lock in profits is in this market. We took another $35 to the bank today, making a superb $161 profit for the first two months of the year.