Gold has been kept alive by the 3/4 point rate cut making it even more over bought. We are long GLD which hit 90.35 on January 3 fell back, then shot back up after the cut to close last night at 90.08. The action is forming a double top at 90 (Link 1) so we want to take our profits and get out. The line in the sand is 90. In the 15 minute time period you can see see the gap that formed yesterday (Link 2). The market will probably fill the gap before deciding on it's next near time direction. I intend to put the stop near the bottom edge of the gap, but far enough away from the specialist to avoid being whipped. I will post a stop after the market opens.
Link 1:http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gld&sid=0&o_symb=gld&freq=1&time=8
Link 2:http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gld&sid=0&o_symb=gld&freq=7&time=18
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment