GOLD

I'm still trying to figure out the end game for Gold, long term I see it as probably having more upside, in the intermediate term, I've been expecting a pullback which would create a buying opportunity. Since then a lot has happened, between lowering of gold margins from the COMEX, to the new "Certified Conflict Free Gold" act, to the Dodd/Frank legislation that looks like it will end retail trading of gold among many other assets like FX, etc; in OTC trading. This may have a profound effect on Hedge Funds as the legislation is simply not clear. Hedge funds are seemingly taking the most pessimistic view of the legislation in their interpretation which would force them out of OTC trading and the hefty leverage that comes along with it and apparently force them into exchange regulated vehicles such as ETFs or basically any vehicle with less then 10x leverage. Don't be surprised to see some new Gold ETFs with greater leverage then 3x to try and emerge if this legislation isn't cleared up in the hedge fund industry's favor.

For now, here's what gold /GLD is looking like.

 Today's move was met with a negative 3C divergence and GLD went lower from there.

 The 60 min chart RIGHT NOW is inline and is not giving any hints of direction for the intermediate term yet.

The daily trend channel shows price in a bear flag type pattern within the red box. If GLD moves below the lower channel line around $148, it would not be bullish for gold in the intermediate term and may move us toward the pullback scenario.

I'll keep watching for any hints.