Monday, July 22, 2013

Gold Fails to Close Above 50 Day Moving Average

$1334.70 last.
I'm not sure the 50DMA really matters right now but it pays to be aware of these little oddities. One of the stories I've regaled the (long-suffering) readers with:
On July 16th, 1990 the DJIA closed at 2999.75.
On July 17th, 1990 the DJIA closed at 2999.75, the exact same closing print and I pointed out to an old-timer “Hey we almost closed at 3000″.
His reply: “Yeah, but we didn’t, I’m going short”.

By Aug 1 we were at 2,899.26.

The next day Iraq invaded Kuwait.

By Oct 11 we were at 2365, down 21% from where the pro decided to make some money....
From Bespoke Investment Group:

Gold: Close, But No Cigar
With a gain of just over 3% today, the price of gold had its best one-day gain in over a year.  In spite of the rally, though, the price fell just shy of closing above its 50-day moving average at 1,335.58.  If you are long gold right now, it is hard not to like today's gain, even as the 50-day looms above.