I have been telling subscribers of Beat the Market Stock Picks to hedge the wedge.
When wedges form in bear markets they usually break to the downside with the latest wedge forming in gold.
Gartman jumped on the band wagon today although he is a little late to the party, but that is okay. Welcome to the bear camp on POG Gartman.
I don't think 2011 is the end of this cycle, but unmet expectations regarding QE3, the ECB monetizing and then a huge fear trade component are all unwinding POG at once.
With no one fearful about a liquidity event in Europe anymore, not much monetizing going on and deflation fears very real across the globe...
What reason is there to be bullish right now?
Gold initial breakdown...
Gap gets filled down to $1600... overshoot on downside target.. .never a good sign.
Multi-year trendline topping formation continues into November with a second definitive lower high.
Last warning on Sunday afternoon... Hello?!?!?!? Get Out!