Monday, July 27, 2009

Gold looks like absolute garbage

Excuse the phrasing, but really.... It's just trading that way.

I stand by my call from March: Gold will see 750 before 1000.

I will be the 1st to admit, gold is very VERY difficult to time on the short term basis day to day.

However, with that being said, I am looking to open up a large core IRA Swing Trade position in DZZ here shortly, place a very tight limit stop loss, and just and let it go for a couple weeks to likely months followed with a loose trailing. It's not my favorite vehicle (etn), but for a multi-week swing ira play, it fits the bill here.

Using $GOLD 967.10 as my stop out, and 880 (the 200ma as my price exit/target)

Since March, the $USD has tumbled from 89 to 78.64 here.....that's a very big move down.
During that same time, $GOLD has done....well nothing at all.

Ya know, if gold can not go up at all when the dollar is tanking, what is it going to do when the dollar catches a bid? I dunno, but there are way too many stars aligned here to bet against gold NOT going lower. It has had everything going in its favor, yet its looked stale the entire time here.
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