4
Gold is on the Move
GOLD 0.00%↑ built a solid base in the $4,000 an ounce level. What made it even more exciting in trade was price being below the 200-day moving average. See the yellow moving average line on the gold chart above.
Meanwhile, semiconductors and several high-flying technology names are losing momentum.
That’s exactly the type of environment where I want to be paying attention to Stage 1 setups . stocks and sectors that are building bases while everyone else is focused on yesterday’s winners.
DON’T CHASE THE REBOUND
Friday’s rebound was encouraging, but one strong Friday didn’t erase a week of distribution.
That’s why I’m not interested in chasing stocks simply because they bounced.
I want to see Money Flow confirm the move.
If the market stabilizes and Money Flow begins turning back up, we’ll have something to work with.
If the major averages continue to weaken while leadership keeps deteriorating, we’ll know the correction has further to run.
Either way, the Money Flow Trading System will tell us what the market is doing.
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