Stocks And Precious Metals Charts - Feeling The Risk - Options Expiring

Stocks sold off fairly sharply today.

One could point the finger at unrest in the Middle East, as Iran was blamed for seizing not one but two British tankers.

The VIX responded and so did the US dollar.

But gold and silver fell, in response to the Dollar but without regard to risk. For now.

I include my chart below showing the three ways of picturing this presumed consolidation pause on the gold breakout.

As you can see, my preferred formation the symmetrical triangle is making a very good fit. Gold came back down to test or 'kiss' the triangle after the initial breakout. In the other two gold merely retreats.

The market is expecting a 25 basis point cut at the next FOMC meeting on July 30-31. But they are also thinking of 50 basis points. There was quite a bit of speculation on that earlier this week, sparked by some comments from a Fed head.

And while no cut is certainly a possibility, I think it would shock the markets.

The markets are so spoiled on their bubble milky that they will likely sell the news on a 25 basis cut.

Well, whatever. We'll have to wait for that one. I have included the economic calendar for next week.

Let's see what next week brings.

Have a pleasant weekend.

(Click on image to enlarge)