Gold Breaks Up and Out Again; New Record High
November 16th, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
$1128.
I don’t mean to piss on the parade, but here’s a gentle FYI for the more tactical gold investors out there: There’s some bearish divergence showing up on gold in the longer intraday intervals, and while the dollar is still in its downtrending channel, there’s bullish divergence.
Even if the dollar breaks below current supports, there’s more support just below.
Let’s look at the weekly U.S. Dollar Index chart:
U.S. Dollar Index, Weekly Interval
I’m selling some gold here.
Definitely don’t read too much into that. All I’m doing is getting flat.
I’m a much more tactical trader than most of the people reading this, and I wouldn’t recommend strategic gold bulls or dollar bears trying stunts like this. While I’m holding less gold, short term, the goal is to buy more at lower prices. It’s a gamble, of course, as the thing could just keep running higher—much higher. But capturing less profit, I’ve found, is a lot better than giving a lot of profit back.
So, when I’m dealing with a position with a large profit, my pigs-get-slaughtered senses kick in and I start to sweat it. Especially with that dollar lollygagging at these levels.
Maybe “this is it” as the most rabid gold bugs claim. Depending on which one you pay attention to, gold is headed to $1500, $2000, $3000 or $5000.
Maybe.
But I stopped trying to hit home runs with trading a long time ago.
Har, I was considering taking one or more of my gold coins to a local trader just to see how much cash I could get.
I’m “land rich – cash poor” as the saying goes.
Would like the cash for hmmm – lets name it. Plumbing, electrical etc.
Those darn housing glitches.
Would a local trader give market price?
Wonder if anyone else is selling but not on the exchanges? Would love a word in that regard and thanks so much.
I agree with your gold analysis vis a vis trading. Lightening up makes sense. Core holdings of gold shouldn’t be tampered with yet.
Sell half your gold, privately, but only if you need preps. Use half of that for preps and half for silver. There will be more demand for silver, and less supply. And, anyway, you get more for your “money”.