Why Gold Looks Downright Terrible

Saying yesterday that gold looks terrible led to some thoughtful comments and emails (which are always appreciated). Given that, it makes sense to provide some clarification:

By Mercenary Trader: By Jack SparrowSome quick thoughts on gold as we finish up a light holiday week of trading…We have repeatedly emphasized, in past months, that gold looks terrible. We grew constructive again - briefly, when gold responded well to the previous jobs report, as documented in the following posts:

Egypt is free!  …and the market rejoices. There’s nothing like a successful revolution to juice the bullish sentiment on Wall Street.  While Egyptians celebrated Mubarak’s resignation by dancing in the streets, traders marked the occasion by sending US equity indices to yet another recovery high.

By Mercenary Trader: By Jack Sparrow Saying that gold looks terrible led to some thoughtful comments and emails (which are always appreciated). Given that, it makes sense to provide some clarification:

After spending nearly the entire month of January moving higher, the broad market is running into its first major technical challenge this year.  CNBC has been showing a ticker of the Dow, showing in real-time how close the index is to breaking the 2011 high, and the S&P 500 is also entering the price range where last year’s rally stalled out.

By Philip Pilkington, a writer and research assistant at Kingston University in London. You can follow him on Twitter @pilkingtonphil

Founders’ note: And two became three… we are excited to announce a new addition to the core Mercenary team.