Risk off Trade is in the purchase of Dollars or US Treasuries, not in Gold. Dollar has been screaming up because of the impending doom in Europe.
Gold, The Dollar Index and the S&P500 emini futures contract are running hand in hand this week as the Euro has been hit. Lets look at the Major trends. You can see as the Dollar index has been rising that Gold and the S&P500 normally run inverse to the major trend. The Dollar is up, Gold and S&P500 trends down. This is showing the major trend to be Risk off trade and flow of currency internationally into the Dollar index. The Risk Off Trade sometimes exhausts and this is when the Dollar index goes down and in the mid term you would normally see where Dollar index goes down, gold goes up and the S&P500 would also be hit. We would have to enter another chart here as the Euro actually rallied and left the S&P500 behind. The Risk off Trade can Exhaust in the purchasing of the Dollar and hit major Support.
The Dollar index, the Gold futures and the S&P500 emini futures contract have been moving together this past week in a very unusual rally. This is showing the risk off trade for the Euro but it showing that Gold has hit some support and could be heading for it's upper resistance at an initial price target of 1580. The Point of control is actually the neckl [...]day trading course
