MAPPING THE MARKETS

                                     Knowing Where You’re At

We got the anticipated Friday profit taking today, and then after 12 Noon gold went into its “psychotic teenage girl” mode for the rest of the day. Say hello to your $28 range. It  was pretty tight affair into the U.S. session, and then came the dealer induced chop we all know and love; no matter what you do they’re gonna clip you at least $0.30 getting in and out.

We got long down near the first set of lows and scalped it for a few bucks; for an anticipated chop-chop Friday.  I’ll take it. Last thing I want is to get in something heading for the close with no where to go. Long or short makes no difference; trouble doesn’t care.

Below are the current cycle daily charts. Yellow boxes are down and white boxes are up.

XAUUSD

It looks like today was day 8 in the 8 day up cycle, and the start of day 1 in a new cycle [probably 3 day] down. We’ll have to see what happens on Monday to see whether or not the down move is continued, but it looks like we got a couple of days of weakness coming up early next week. With today’s late move down, the daily chart doesn’t look all that good with a bearish engulfing pattern.

EURJPY

I’m hoping today wasn’t day 3 of the 3 day up cycle and that we are in day 1 of starting a new down cycle. I really didn’t want to open a position on “square up” Friday, but the action today in EURJPY doesn’t look like it is squaring up anything except going down. It looks like it is in sync with XAUUSD as far as going down. Monday will give us some clues.

AUDUSD

AUD looks like it is in day 2 of a 3 day up cycle. We'll see next week.

Have a good weekend everyone.

-vegas