Interesting pattern

You know by now I like to look at volume pattern. This is another interesting example (click on the chart to enlarge it).

Last December GLD spiked with above average volume. It was a sign GLD was doomed and was likely to go nowhere for a few months.

Above average volume appeared again as GLD went through a 12% correction. It signaled the correction was close to the end.

Now GLD spiked again as investors panicked because of the European crisis. Volume soared taking GLD close to the December high.

It is going to be interesting to see if GLD is going to pause again as it did in December.

Stay tuned.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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