They will never make it easy for you to nail the big short or long trade. Case in point–All of the backing and filling in the metals the past several weeks after April’s “crash.”
Nonetheless, the intermediate-term trend remains firmly lower in the precious metals and miners, even if the metals are still in secular bulls.
Updating the gold ETF monthly chart below, again it will not be easy and there is always risk of this being an incredible bear trap before we head on to new highs. Price is now below its monthly chart Bollinger Band. So, I am inclined to scale into weakness with my DZZ position (long it, which is ultra-short gold) inside 12631.
That said, oversold can become more oversold as we saw in April, and the $120 area in GLD appears to be the next logical downside target.
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