03 September 2012

HSI, GOLD, QE coming sooner?





HSI
this is a chart waiting for a top to be confirmed [not formed] as the island top has been formed, so therefore the next day or two is important that it will not fill the gap on the right, otherwise the formation is distorted,

rsi indicates there is room to fall if the island top is confirmed.

i have never seen such formation in the course of my investment life, usually an island is only composed of a day or two either at the top or bottom, never an island of 10 or more days. maybe govt is interfering too much so everything is distorted.

usually after an island top or bottom is confirmed expect a one way blowout or fallout of at least 2000 points.

GOLD
the recent shoot up in gold is likely a short covering or QE coming sooner? ECB officials did not show up at Jackson Hole, any hints!!!

the gold chart indicates it will hit 1730, if there is less than 50 to gain, just wait a while.  also follow it closely if you have taken position since the top may not last too long for you to close out the position.

rsi indicates it will top out pretty soon, would then the fall coincides with the hsi fall as well?

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