Currently short gold at 1425. The high yesterday was 1432. I had a sell stop below 1425 yesterday to enter the market on a stop market order. Currently the market is at 1391. I want to cover at 1384 to 1382. 1382 is a level I would consider getting long. Its the 1/2 way point of the recent 100 dollar rally which started with the low at 1331 on November 16th. I really like buying at 1382, however, I want a tight sell stop.
If the wheels fall off this rally, and the correction goes back to 1370, I think that is a gift. Have a buy order resting down there, of course, with a sell stop below in case things go sharply lower below that.
When I have a buy target, its just that. A buy target. If it works, great. If it doesn’t, this is not Jonestowne re-enactment. No one is drinking the cool aide. If it doesn’t work out, bail and live to fight another day.
For my buddy Brian, soon to be a star on Hell’s Kitchen, watch your love affair with silver, bro. A 6 dollar rally between November 17th and yesterday’s new 30-year high at 30.75. We have pulled back to a 38% retracement so far with today’s low at 28.54.. Next area of support, which I think we will see, and I would want to buy is 27.80…If the wheels fall off, and 27.00 does not hold, I’d take my ball and go home.
December is still a lousy time to trade. Markets are thin. Today is the 8th. In another week, most sane individuals will be on vacation or sitting at home watching football.
Good Trading
CER