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Posted 14 December 2011 - 03:19 PM
Action Alert - Bulletin: December 12, 2011
In view of todayís break of the symmetrical triangle to the downside, letís get our foot in the door on the short-side and buy DGZ at the market which is a one-to-one (no leverage) play on goldís downside.
Target would be a test or break of the September 1531.90 low. Stop would be the November 8 1804 high. I do not want to purchase the double-inverse ETFs just in case this break turns out to be a whipsaw which sometimes occurs on breaks of these type of triangles. That said, the DGZ at least becomes a hedge position. As you know, I have recently warned (and traded accordingly) that we could be looking a lower gold (and silver) prices over the near term based on recent negative volume patterns. Nothing changes my big-picture view, but, short-term, we have to flow with whatís occurring. Silver has risk back to its November 26 low of 26.00 and beyond that to the low 20s.
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