Some of the more conspiratorial thinking among us have suggested that the markets are really controlled to a large extent by "the big boys". I found an example of this phenomena today that is interesting. First, here's last night chart for gold:
The chart maker suggests that we're in for a "smackdown" of gold. There are no shortage of government monetary people who really would rather gold not go wild and the speculation is that they are keeping it trading in a narrow range (the blue box above). Now let's take a look at today's interday
chart for gold:
My my. Down boy. Stay in the box!
That's some major hair cut about midday. Wonder what happened to make gold drop $6 dollars like that?
The point is that if you're a little guy investing, make sure you understand the agenda's of the big boys before buying/trading. If you don't follow the movement of the big boys closely, find someone who does and let them swim with the sharks.