Citi are bullish gold – I’m selling!

So Yellen didn’t frighten the horses yesterday (as if she would!) and it is business as usual with the Fed slowly tapering and all is right with the world.  This week, I have observed many bullish comments on the US economy and stock markets – a significant ramping up from last week when stocks were plunging. Then, the emerging markets were going to topple the global economy.  This week, they are not.  

 But since the markets make opinions, this makes sense. Bull markets create bullish comment and vice versa. But are we near the end of the counter-trend rally? 

I still cannot find a convincing A-B-C, so the way is still open for an A wave top around here, then a B wave dip and then a C wave rally to perhaps the Fib 62% or even 78% retrace.  Stranger things have happened.

Meantime, I have taken my profit on my 1,000-bagger on the downside, taken a nice bonus on the upside, and am currently flat.  But I sense that this situation will not last too much longer and I will end up short again soon.

GOLD

It has rallied to the $1290 area – and in concert with stocks.  This is unusual because they have been trading counter-trend.

But the $1290 level is the Fibonacci 62% retrace of the minor wave down.  Hmm.

And now Citi are calling for $1400 gold (Bloomberg article today) and many more are tuning bullish, especially on seekingalpha.com.  That’s a worry.

It seems the herd is gathering again.  Maybe they will succeed in pushing gold above this Fib level as more traders jump on the waggon.

I have a long trade working from the $1220 level and have decided to take partial profits here for a terrific $66 profit and leave the remainder running while moving my protect-profit stop up.