Rising markets include biotech (IBB) which is seen in the chart below. One of the keys to successful trading and investing is knowing which markets are in up trends and which are in down trends. The goal is to be long the rising markets, and on the sidelines for the markets that are declining. The tool to assess whether a marketing is rising or declining is simply an observation of whether price is making higher highs and higher lows (bullish), or not.
Gold, while now making higher highs and higher lows, is in the correction phase of its current intermediate cycle. Price may decline further in the weeks to come, or it may generally trend sideways. An excellent technical tool uses the weekly chart and the Slow STO (14,3) indicator to roughly gauge when the correction phase is likely to conclude. A reading near 20 or below is anticipated before gold resumes its next bullish intermediate cycle.
