GLD , Gold ETF

GLD jan 24 2012

We were lucky having gotten the $1900+ and the $1500 levels pretty well right on. In the mean time we have bounced back up roughly $160 up from the low. This is the point where the light is neither red or green. It is amber so it is best to step aside. The bulls  will be salivating from the mouth for this clean and clear a-b-c correction, expecting a new high down the road. The bears will be doing the exact same thing as they see a clean and clear 1-2, 1-2. A series of 1-2’ is the start of a very bearish downturn, typically the 1-2’s are  similar in shape and retrace roughly equal amounts, in this case about 60%+ each. There are other possibilities as well. The sidelines is the place to be.