May 9, 2006: Cnsld

In yesterday's entry I mentioned the cnsld of the market for the 3rd day and that's what happened with the exception of the Dow which seems to be suffering from "mad Dow disease" lollllll... Today is day 4 and there should be some resolution to that cnsld.... looking at today's market internals they sure pointed at some crappy action as all 3 were contained within their respective zones so that means no trading!...as simple as that...


Gold continues to surprise and I was able to get in a very nice loooooong trade early on on the H&S pattern break.. I put up a daily chart with a 9sma and it sure shows that volatility picked up since it crossed the $600 level... tells me there's plenty of speculation at this point but who cares as long as volatility has picked up :)...geez, on some days the range is $2400!!! Am I complaining? Noooo waaaay.... Is there more upside to Gold? There might be but I'm not swing trading it so all that matters is intra-day at this point...Nevertheless, we're very close to an intermediate top based on the weekly/monthly charts (as posted over weekend).

Observation: The metals and currencies correlate very well starting 8am (EST)... I might try to enter currency trades based on that.