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| Gator's Chart of the Day: GLD |
Like the sign says ... Gold as represented by the GLD etf does not look good here. The 200 day is just about to turn down as the 50 day dives through it. Volume has been above average and the bars are red. Note that the Bollinger bands have begun to spread indicating that volatility is increasing. In this case I think that means a strong move down. If 156 does not hold (and I don't think it will) then 153ish will be tested and if that fails 150 then 148 ...
The Trade
If you like to short then any move down could pick up speed quickly. If the price does move higher from here I would look for a failure at the 200 day and consider selling short at that point. As most of you know I trade in IRAs and shorting is not permitted but I can buy puts. That would be my strategy. My target is a test of 148.
