GOLD
GLD ($85.82) has broken a head-and-shoulders top with a price objective of $72/share. This is hard to imagine, even though the technicals point that way. I choose not to play the downside for an objective of $72. The only way we get there is if the FRB starts raising rates and the $ rallies big time, something I do not expect in the near-term. I do not think it is a good risk/reward play at this point. I hate to ignore tecnicals, but sometimes you go with your gut. I stand neutral.
My call is that the drop in gold demonstrates the possibility of a counter $ play and the quick reactions of momo and hedge funds to leave a winning sector and look for other sandbox’ to play.
3 years ago • Notes