I'm getting a bit uneasy this morning.
As expected (hoped) last evening, 74 provided too much resistance overnight for the POSX and it rolled over, making a low on the June contract of 73.57. On the chart below, it is quite clear that the pig should catch a bid near 73.50. As it bounces off of there, it will once again encounter that down-sloping trendline. If it can break through, it will rally as buyers emerge and shorts cover. It would likely make it all the way back up to 74+.
All of that said, please keep in mind that these are simply words of caution. The PMs may continue higher and all will be well. The POSX may trade all the way to 73 before finding support and, even there, it may just bang around between 73 and 73.50 again, like it did back in April. Let's hope so. In the meantime, keep an eye on the charts. TF
12:20 pm EDT UPDATE:
Sometimes it sucks to be right.
As if on cue, The Cartel took the opportunity presented by a lack of buyers and jammed gold down about $10 an hour ago. Fortunately, I took my own advice and sold one of my August 1550 calls before the beatdown. I'm now looking for a spot to buy a dip with a tight stop. That spot looks to be somewhere near 1530. We'll see.
Of course, today's action presents another possibility that we must be aware of. Namely, that The Fed has warned their friends that The Bernank is going to give a "hawkish" speech this afternoon, seeming to disavow QE3 and attempting to give support to the lifeless, dying POSX. This has caused a rush to the exits from the connected, inside money. Wouldn't be the first time this has happened, now would it?