After The Bell- Gold Update Dec 14th

Short term trading, we use RSI<2> instead of RSI<14> to indicate trend change; short term. Studies show RSI below 2, outperform the following week or weeks verses stocks above 90 RSI<2>. We also like to see an exhaustion/panic move into the RSI<2> low.

As noted on the chart below, GOLD is providing that set up now. I believe it could also be the general foreshadow of the broader indexes to make one last push into a final high. Notice each push off the lows resulted in a lower high, with the latest exhaustion move taking out the 200 day.

Make no mistake, commodities are signaling a massive market pull back; expect collapse in all leveraged investments.

How do we play this trade?? We don't go long GLD, we short GLL.

Tim Kathlina