Earlier today a trader was commenting about the tragedy in Japan. While all that unfolding over there is not something to joke about, it is also sad that this trader was trying desperately to relate what is happening there to the market. After the market hit 1251 early today, he remarked how can the market go up with all the turmoil going on in Japan. Then there was another, trying to talk about gold going down at the time like this. When the dollar is fading and there is so much fear, gold should go up.
It just shows how much people really know about how the market moves. It just shows how really consistent their understanding of news driven cause and effect from which they thrive on.
The market popped by achieving a new low at 1251 on more bullish volume. We call this accumulation.
And how does this relate to legs?
And why did we go down to this consolidation? Isn’t it obvious, that from this consolidation area that it can be considered the leg start?
But when did this distribution began? Was it just the recent events?
The market clearly does not do anything that it is not set up to do. To the moon indeed.
Why did GC drop? Isn’t it in times of fear and uncertainty that Gold should pop? This is the known correlation is it not? And when there is fear and hording…it is gold not green back or stocks that should pop. Isn’t that what cause and effect of bad news should bring?
O but this is after the fact. Do you still not understand progression? The setup was days prior or even weeks. Yes the news accelerates the move. But the moves are still purely technical and set up technically to support the outcome.
Isn’t it interesting what the dollar is doing?