Feb ’13 Gold: Neutral Positive Shift
- Technically the MKT is open to further positive "corrective" action, however today the indicators are balanced, putting the outlook "on the fence" with the potential of being a turning point session. On the BUY side accept BREAKOUT and FADE strategies off major inflection points with the expectation that any trade has the potential to be the start of the next positive move. If the market is indeed going to transition higher, it will maintain positive structure. Any break in momentum has the potential to be a negative turning point and an end to the "corrective" rise. UP BREAKOUT strategies can risk little more if current events and other MKTs of confluence confirm a positive posture.
- On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that any trade has the potential to be the start of a negative shift. Use aggressive position management to reduce profit giveback as the neutral posture can produce some false signals. If the market is going to fail, it will hold negative structure and not look back. If not, a choppy trend-less trading environment should be expected.
