NEW YORK (TheStreet) -- Last week was a choppy one for the markets, with leading stocks really not doing much for the most part. That has me thinking that we need some consolidation at these levels.
That said, every dip has been relatively short-lived and bought heavily for well over a year. So I'll be watching closely for a quick turnaround.
While the leading stocks weren't doing much, the good news is that many smaller, very cheap stocks are moving huge and are very tradable, especially on an intraday basis.
There is almost always a place to make money, it's just a matter of finding it at the right time.
As for gold (GLD), it had a choppy week as well. It's resting and consolidating nicely here but it could see some limited downside in the coming week before it makes its next move higher.
Let's take a look at the pretty gold chart.
Gold closed the week up 0.72% and looks great for higher prices in the not too distant future.
Gold has a really nice saucer bottom here. It's very similar to a powerful cup and handle pattern.
I got quite a few question about that this week.
Cup and handles are very powerful continuation patterns. This saucer is a bottoming pattern.
That said, we are building the handle or right side of this saucer perfectly here.
We can chop between $1,320 and $1,360 and perhaps even see a pullback to the 200 day moving average at $1,300. A break of $1,300 would not be great and would signal we need more of a correction -- but I don't see that coming.
Once we break $1,360 we should quickly move to the $1,417 area.
All in all, gold is behaving well since putting in its double bottom low on the last day of 2013.