Here’s a chart I was unable to include in the Red-Hot Commodity ETFs issue that went out this morning. Naturally, when I’m trying to send out an issue, there’s a computer problem.
If you think the US dollar has another leg down — and I do — then GLD shows real potential. If we are seeing a ‘bull pennant’ pattern, then it’s best to remember the old saying: “flags and pennants fly at half mast.” That would take the GLD up to 96 or so.
There is a more leveraged way to play gold, the DGP, but like everyone else, I think it’s best to limit our risk at this time.
And remember, I could be wrong. The US dollar could take off like a rocket and gold could crater. Why? Because this market is plumb crazy, that’s why.
More on this topic
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SPDR Gold Trust (ETF) (GLD) Underperforms Equities
(Short-Term Trading, 3/11/10)
Compare SPDR Gold Trust (ETF) (GLD) and SPDR S&P 500 ETF (SPY)
(Short-Term Trading, 2/28/10)
Did You Sell GLD, GDX, SLV?
(The Technical Take, 2/25/10)
A few more tonnes for the GLD trust
(The Mess That Greenspan Made, 3/3/10)
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