Today's Winner Is Gold
Risk taking seems to be off the table today as everyone watches the potential conflict developing in the Ukraine. All of the major stock indexes such as the S&P 500 Index, NASDAQ Composite, Russell 2000 Index, and the Dow Jones Industrial Average are declining in tandem since the opening bell. Last week, it was reported that money from the small investor was pouring into the market. Did the small investor just buy another top in the stock market?
Not everything in the stock market is falling today, spot gold and gold mining stocks are rallying higher on the trading session. The SPDR Gold Shares (NYSEARCA:GLD) are trading higher by $2.89 to $130.51. This is a new four month high for the precious metal. When gold rallies it is usually a sign of inflation, or unstable stock market activity. Gold will often trade inversely to the USD/JPY (U.S. Dollar Index verse the Japanese Yen). Day traders should watch for the GLD to have intra-day resistance around the $131.50 area. This level was the high pivot made on October 29th, 2013. Remember, old high pivot levels will become new resistance points. Either way, gold is the big winner so far today.