Tuesday, March 24, 2009
Gold Moving Down as Expected; March 24, 2009
Just to update the short gold trade from the post on March 21st below; the head and shoulders pattern proved a great indicator for the bearish potential that came about (see above updated gold chart). Gold has sold off nicely this week and I expect it to continue. It's time to move my position to have the stop losses at break even in the $955 area. Now I can just sit back and let the trade run. I expect gold to get to $880 at least, in about a week or two.
FYI - I don't always post updates here if nothing significant or new has happened in the markets. I don't see a point to post "nothing has changed", or "waiting". I've beeen waiting for the stock market to show signs of top, which I got wrong a few days ago, so I've been on the sidelines essentially. Now I see a stock market top and gold has moved significantly in my favor so I'm posting an update.
Right now my trades are short gold with a stop at breakeven, and I'm mildly short the S&P with a stop at 821.