Monday Update

My system barely moved higher to +1000 and the buy signal is on but a confirmation up day is needed tomorrow. Although the 80-85 support in the $HGX has turned out to be the right call, the most likely scenario is for a rally top before the end of the week followed by a decline through next week that takes us back to test that low of 81 with the possibility of at least an intraday break of 80. Going with this scenario, I'm looking at 90-93 as a good place for the $HGX to stop right now before heading down. The least likely scenario is for a straight up move that will take us through 100 now but this is a longshot at best and I wouldn't count on it. I will be taking profits from my purchases from last week in preparation for another move back down. Not surprisingly, the Yen tanked today with the equity move higher and I covered that Aussie/Yen position near 70.50 at luckily the right time last night as it is now back above 74 cents. If the rally tops this week, the Yen should rise again and taking that trade this week could produce a nice return by next week. My next post will be on Wednesday.