Thursday, January 27, 2011

Late Day Correlation Update & Gold Carnage (GLD)

Gold, S&Ps, AIG, Dollar

Today has been quite the day for Gold on the downside, off over 20 points all while the market sits on highs. If gold were not puking on itself the S&Ps would be clear over 1300 in my opinion. The dollar is still fighting with support levels and refusing to give up the 78ish area without a proven long fight. 

Spot gold broke the 1330 level with ease, if 1310 goes surely 1300 will be the next stop in short notice.. Perhaps a larger
fund was liquidating longs in metals while rotating in to cash and possibly dollars, though the dollar has really been at the mercy of bears despite its resilience. If gold cannot get off lows market will sit into the close, gold gets a bid before the close market should make a run at intra session highs of 1298.... we shall see.