Thursday, June 17, 2010

How overbought are the markets now?

Another impressive day for the bulls where a late surge helped the market finish in the green. Any time when the market shrugs off bad news, as the it did today, is a bullish sign indeed. In case you are wondering how overbought the markets are now, well the answer is that, after two days of consolidation, the markets are not overbought anymore.

The big story of the day was the all time highs in Gold. GLD got rejected right at the resistance and the volume was impressive today. Watch out for 122.50.

Personally speaking, I didn't do anything today. As the regular readers of the blog know, I had been quite bullish on gold this entire week and had actually just posted about it yesterday.  I had even started a position in NGD, a junior gold miner, two days back in anticipation of the move we had today. Well, dear readers, on this glorious day for gold, my gold miner went up by whooping two cents! This "hurts" more than a loss, being so right and not making any money off it. Oh well, stuff happens.

Take care and good luck tomorrow!

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