Gold

September 7th, 2011

Warning: This is not a recommendation to buy, sell, or hold any financial instrument.

Short termers: Get ready to lock it in, hedge it, pare it down, close it out, etc. etc. going into that high.

—Gold Filling the Gap

Here’s a picture perfect price/RSI divergence double top at a record high.

Spot Gold, 8 Hour Interval

Spot Gold, 8 Hour Interval

This is a good one to know, if you don’t already. I use this all the time, in reverse, on my bottom feeding longside equity trades. Things like price/oscillator and price/volume divergence alone are pretty worthless, but combined with double tops/bottoms on 52-week or record high/low levels, they’re worth watching.

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2 Responses to “Gold”

  1. dagobaz says:
    September 7, 2011 at 3:37 pm

    did u short ? I will assume that you did; it was an 8/8ths mm rule 2 short. (always short double tops)

    the final short side target is >= 2x the previous wave. 1520 or so.

    nice call.

    – c

  2. Kevin says:
    September 8, 2011 at 4:27 am

    I didn’t short because I closed down my Open e-cry account a while ago and moved the money to my cheap equity brokerage. I looked at buying puts on GLD, but I definitely wasn’t the only one who had that idea. The premiums were through the roof.

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