Gold Explodes While the S&P Remains in Breakout Territory

It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine--that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. -- Jesse Livermore

NEW YORK (TheStreet) -- Early weakness is never fun to sit through but that is generally how bull markets work. They try to shake out the weak hands at every opportunity.

The Jesse Livermore quote above is one of my favorites and one to live by, in the right markets.

I think we are in the right markets.

Gold had a huge day today, and many people are very excited. Gold is still trending lower and if we are indeed changing direction there is no rush to get in yet. There will be plenty of chances, and much better ones.

Often in bear markets, there are large and fast counter-trend rallies which do not last. We could be seeing this in gold right now but it is too early to tell.

Many stocks are still set to move and a few are, while others are still finishing bases.


While the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, didn't have a spectacular day, we are still in breakout territory and looking for higher.

As long as we stay above 196 we are in the clear. I'm not trading SPY, rather leading stocks  that tend to move much quicker.

Enjoy this bull market and your evening.

Warren Bevan

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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