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Wednesday, August 28, 2019

Market Update 8/28 - Market Pulls Back Ahead Of August Gold Contract Expiration

I though we might be off to the races this morning, on light holiday trading, but it looks like we're going to retest the recent low, on a 20+ $VIX.

I thing this has a lot to do with the Gold markets being engineered a little higher, going into August contract expiration (today). 

NASDAQ - pullback to the bottom of the range

I'm not really expecting much more than that, and going back 20 years, I can't find an instance, where the $VIX closed at a new recent high going into the end of the month. I suppose this has to do with money being put to work at the end of every month, and especially when that coincides with the end of a quarter. That being said, we could see the bottom of the range break, and there a lack of a bid under this thinly traded market, and that could result in a flash-crash to DOW 25,250. I'm not calling for that, but we've seen the rug pulled out before. "Never pass up a good opportunity to rob the retail investor", as they probably say on Wall Street. 

$DOW DCS chart - slight risk of a flash crash, and a capitulation top in Gold.

I think there's a good chance we remain trapped in a range, ahead of the Brexit deadline. That's only a couple months away See the down turned triangle pattern in blue   

Hopefully everything goes according to plan, and I can take a few days off.

Follow the Public charts for up to the minute updates, and charts, and have a happy Labor Day weekend!

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