Monday, April 25, 2011

Markets are about to get Volatile

GOLD (June)
Monday's 'spinning top' could represent point 23 of the three peaks and domed house formation. If this is the case a violent decline may be imminent. Aggressive traders should short June Gold risking the latest high. An alternative execution could take place on the break of the April 12th low of 1445.00

45 degrees from Feb 5 2010 @ 1052.40 @ 1497.40
60 degrees from Jan 28, 2011 @ 1310.9 @ 1463.32
60 degrees from March 15,2011 @ 1385 @ 1457.75
45 degrees from July 28 2010 @ 1181.70 @ 1453.70

Accordingly the US Dollar could be set to make an impressive rally while the S&P could begin an intermediate cycle decline.

Below is a 15 minute candlestick showing the breakdown from the top that was accompanied by divergent RSI, a pivot on the ADX line and increased volume during the declines.

see previous updates for details of the three peaks and domed house formation

This week has several significant astrological signatures that can possibly affect the markets--especially Gold, S&P and USDX.
April 22: Venus conjunct Uranus (Gold and Stocks)
April 27: Venus squared Pluto (Gold)
Sun trine Pluto (Gold)
April 30: Venus opposed Saturn (Stocks)
Mars conjunct Jupiter (Currencies)

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