1:03 am PST. I mostly just sat back and did other things after the open this morning. Mostly watching the FXE right now for a short set-up. Prices popped their head up above the upper-channel line, but my wave count shows this is getting overbought and becoming ripe for an interim top. I want to see how the price action does tomorrow and if I see any dark pool action too.

9:13 am PST. If UUP breaks down from this channel, that is going to be massively bearish for the dollar, and very weird given gold’s price pattern. This will not be a bull flag anymore should UUP breakdown. FXE looks as though it is breaking out now.

7:26 am PST. Every time FB sells off after earnings, it gets bought. The Zuckerbergs live down the street from a friend of mine. She said they have body guards 24-7, following them around even when they go walking around the neighborhood. What a life. Not sure I would want that, but I might trade their stock. There must be a tipping point at which your wealth and fame no longer afford freedom, but imprisons you.

7:12 am PST. The Euro is up against resistance now, or is it just about ready to break out? Today’s rally is the fourth test of the upper-rising channel line on negative divergence.

6:58 am PST. Silver, today is day 14, in a nonstop downward march.

6:40 am PST. Closed out overnight swings on BAC, SPY, and XLF calls all for gains. Closed GDXJ puts for 100%+gains. Closed VXX puts for loss. VXX did not cooperate, but overall net gain so far.

5:30 am PST. Gold and silver keep dropping. I see support for gold at 1220, but that might not be final support, just some modicum of support for today. I am taking this one day at a time depending on how the pattern looks at the open and at the close. I had written the other day about gold “these types of patterns can produce waterfalls”, and then suggested it unlikely. But if it turns out that I am right about how these patterns can produce waterfalls…I do not want to make any predictions now. Now just trading it tick by tick.

The USD/JPY looks higher this morning as well. It provides useful information, in addition to other factors to consider in context.

1:27 am PST. The Dollar looks like it is getting ready to rally. Looks like a bull flag to me. Treasuries went up and tagged my bounce retracement level and sold off too. Plus U.S. indices still look bullish. There seems to be a lot of head winds for gold right now. Except that FXY is reaching support.

1:13 pm. Gold futures tagging 1236.40 after hours. Funny I mentioned “waterfall” yesterday but then ruled it out. Next time that thought comes into my mind, I ought to give it more credence, lol. GLD breaching the lower-rising trendline in the channel.

1:05 pm PST. Exciting day. Gold dropped steeply at the open this morning and I added to my gold positions. Going into the Fed announcement the mining shares started to pick up and I started scaling out of positions and then exited all my gold positions post Fed. Gold then dropped down to 1239. Whooo!

FXY did not close the gap down again! FXY is now tagging the lower trendlines. Gold also is just breaching a lower rising channel trendline. SPY looks like it might want higher. I saw a bunch of gold and bond prints today in the dark pool. Very active institutional trading today. We closed below both the gold and the bond prints.

Just when I thought silver could not break down any further. Whoo, silver.