Hey Market Pilot,
We had the Federal Open Market Committee (FOMC) release its minutes yesterday, June 16 Market reaction caused the dollar to move up strongly and precious metals were hit with a sell-off. Then we woke up today to find each of those moves continued in extreme fashion overnight. The extent of the moves is surprising, but the fact they are doing what they are doing is not as I had been guiding the Moxie IndicatorTM subscribers about these in detail over the last few weeks.
The dollar had been forming a weekly double bottom with positive Moxie IndicatorTM divergence which was also reflected on the daily time frame (pictured below).
We could even see this most recently on the hourly chart with positive Moxie IndicatorTM divergences and what I call a Trampoline Setup which is typically extremely positive (pictured below).
For gold (GLD) (pictured below), I had been calling for a pullback to the daily 50 simple moving average (SMA) since late May, due to what I refer to as the 50-200-50 maneuver. While I have been correct about the sentiment and pullback necessity, I am surprised to find the extent of the drop today. Fortunately, my rules don’t allow me to just buy when price hits a moving average like the daily 50 SMA. Instead, I have to wait for lower time frames to verify support which never happened and therefore never a long entry. In this case, we sit back with our popcorn and watch the crazy moves, with an eye on a possible extreme dip buy.
Your Profit Pilot, TG
Having trouble making money in the market? Join me live on Wednesdays at 10:30 a.m. Central. I navigate the markets and answer your ticker questions in real-time. If it resonates with you, I would be thrilled to help you chart your new path in your trading career.