Gold sold off yesterday and our GLD and GDX shorts were up big, will they hold? There is no way to know for sure. The selling volume yesterday was HUGE on both GLD and GDX. The question is was it exhaustive? Look at GLD (Link 1) and notice before the huge selling the volume was normal which is less indicative of a turn around than the situation in GDX (Link 2) where the huge selling is preceded by huge buying. The stochastic is in free fall for both markets and they beg to stay short as long as they stay below the eight day EMA.
Link 1: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gld&time=8
Link 2:http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gdx&sid=0&o_symb=gdx&freq=1&time=8&x=42&y=19
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment