What's your time frame? If you're planning to hold this trade for 6 months+, then this pullback is nothing. If you want to be out within the next 2-3 weeks, then maybe you need to eat your loss.
You guys have no idea if gold will ever come back. You dont have one clue. You can only suspect and hypothesize that it will otherwise you do not have the faintest. If you are staring at a loss, just admit you were wrong and sell at the open on Monday. There will be more opportunities to come...
Said the guy with the bananas in his ears. Keep going with the crowd. The market pied piper will lead everyone off a cliff.
Long gold since 500 Euro's, today it' at 750 or somewhere around there? Bought Anglogold Ashanti at 15$, Novagold at 3$, CDE at 0,50$ and Drooy at 5$. First two cause I listened to Marc Faber, last 2 I learned about myself. Gold at 2k should get me set for life, wish me luck.:eek:
The breakout at 1000 was a seminal event. If it slices through that level, your thesis may have some merit. Too early for the bearish outlook. The prophet.
CDE at .50 was a good buy, but you should take a hard look at that firms modus operandi historically and the effect of dilution. Of course, a raging silver bull market should make you fantastically rich. But to do it as a buy and hold, unless there has been a change which I am not intelligent enough to recognize, I would not be comfortable with. Full disclosure:long CDE puts
Smart money says that the Chinese are phasing in the buying of gold and slowing dollar investments. The Chinese are a superstitious people. This is not a dig, it's just true. Chinese buildings don't have a floor 4 because it's unlucky. Their word for 4 sounds like just like the word for death. (hey, casinos in Vegas never have a floor 13.) The Chinese word for 8 sounds like prosper or wealth. It's a lucky number. The gold rally ran out of poop at around the $1170 mark. Now that this sounds like a bad James Burke episode, note that 1170 USD is 8000 Chinese Yuan. Funny things are bound to happen around this level. Watch for resistance from the people who bought above ~1150 who say "if it ever gets back to what I paid for it, I'm selling!". Once all that gold is absorbed, a solid rally simply because there's only so much gold out there, and the Chinese are scooping it all up. Here's my guess: Chinese New Year is on Valentines day in 2010, and New Year's is a big time for cleaning house and starting your plans for the coming year. Get your bet in before then. I'm going long gold when I fund my IRA in Jan. So if I'm right, I will put this post in my sig and reference it constantly. If not, it's just the ramblings of a crazy anonymous internet dude.
I hope you're not putting too much emphasis on Chinese buying. Right now they are plowing their money into real estate, not gold.
Needless to say, I'm pretty happy with this... I'll be taking a little profit around 1120. I am starting to think that 1085 could have been the bottom even though we spiked through the stops. B