The gold market has everyone so turned around it’s not even funny. One week we’re telling clients to buy all the gold you can, and the next week we’re shorting it. Quite the shit-show, eh Goldman (thanks Zerohedge)?
Now that the gold rally is in full swoon and everyone thinks the world is ending and safe assets are miraculously going to preserve capital, it’s time short the hell out of the commodities. Goldman tells its clients to get long, and 5 days later they themselves are getting short. What the hell is going on here? A disaster of sorts, I tell ya.
Today’s candle is setting us up for EPIC destruction for the gold bugs.
The daily chart shows a shooting-star candle, with extreme downside momentum. On the weekly chart (right) we have a reversal-setup brewing. After going inside week and up, we have sharply reversed back into last weeks range — surely setting up the late gold buyers to get obliterated. I started a short position this afternoon, and will look to fully punish them next week upon further confirmation.
Sorry Cuban, even though you’ve got that cash money, doesn’t mean you know what the hell is going on in the markets.
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I guess a trailing stop would be responsible thing to set @ these levels
If you’re already long, most definitely.
Buyer’s of JNUG are screwed. I got to say though, miners on my watchlist were ripping this morning. Nobody is selling that worthless junk.
While I don’t see anything on the chart indicating an imminent massive sell-off, we shall see. At the time of your posting, /GC was about $1,230 and GLD about $117.5
Mark Cuban may not see it as a “hedge”, but judging by the price action, I think that is precisely what is driving it.
The weekly chart has death written all over it upon its confirmation. Weekly reversal setup at the moment and an inside day today. Below 117.50 will trigger another short sale and below 115.50 all hell breaks lose (for GLD that is).
As far as Cuban goes, I have a personal beef with him — it’s gone back and forth multiple times on the Twitters. Just a jab I had to throw in there, as I pray for the day I get to sit in front of him and explain the markets to him.