It’s Beginning to Feel a Lot Like Christmas

Trading activity has been slowing down all week, and volume continues to diminish. Many traders and investors across country borders are preparing for the upcoming three-day holiday weekend. Yes, it’s beginning to feel a lot like Christmas.

Nonetheless, last week we witnessed gold prices hitting a six-month low. A week ago on Tuesday, gold prices drifted to $1238, a low not seen since July. The final day of the last FOMC meeting for 2017 occurred on the following day. Upon the release of the Federal Reserve’s statement, gold prices surged trading up approximately $16 on the day.

Since that time, we have seen gold prices steadily increase. This culminated in today’s modest increase that took prices above the 200-day moving average for the first time since December 4^th. Although gold futures are only trading up one dollar on the day at $1270.60, prices are now fractionally above the 200-day moving average which is $1269.50.

The fact of the matter is that most technical market analysts use the 200-day moving average as a key benchmark to determine whether a particular stock or commodity has an overall bullish or bearish sentiment. A move above this average is the first indication that the key reversal identified last week has moved the sentiment needle from bearish to bullish.

Gauging today’s activity in the financial markets, it seems as though the tax reform bill which was passed by the U.S. Senate yesterday was for the most part already factored into current pricing.

The Dow Jones Industrial Average is up roughly a third of a percent at 24,818. Even with this marginal price increase, the Dow is currently trading in record territory. The S&P 500 is on track to close at a new record high, which would be the 71^st occurrence this year alone.

So with equities at all-time record pricing, and gold now trading above its 200-day moving average, traders and investors could very well be closing shop for the holiday tomorrow with very respectable profits year to date. Yes, it is beginning to feel a lot like Christmas.

Wishing you as always, good trading,