Saturday, February 3, 2007
Gold trade update
Uh oh. This is not evolving as I foresaw. :-( I am thinking out loud here. I added the last 1/3 position at the 9 DMA and am regretting the 1/3 position add on the initial pullback. Gold closed under the 9 DMA and a bit under the breakout line. I probably should have just sold & moved on, but didn't. Reason: the news about the metals hedgie in London having trouble. I wonder if Friday's weakness might have been beefers hitting gold (and other metals) to take advantage of that news and possible liquidation. Of course the dollar was up a little, so that could have been a reason for beefers to hit gold, too. They are like that - they play ping pong & bounce markets around to create volatility & shake out weak hands & run stops. Friday's COT reports shows the funds added to gold positions, but still are only about 56% of their record net long. I'm going to hold on for now, but might close it on any adverse action.