The interbank reports I receive have been very consistent over the past few weeks; they believe that the market is over-extended on the $1800 handle and the lack of Sovereign buying at these levels will lead to a pullback towards $1625/50. Their argument sounds very plausible but this market is in a parabolic phase which could literally send it anywhere and the longer we hang around this $1800 level, the more likely we are to break above $1910 and take off again.
This is not a market to be shorted. Booking profits on rallies and looking to reset on dips, yes certainly.
