Answering in God's name ..... for the same reason I shorted the Dow Jones top in 2007 .... see below Uploaded with ImageShack.us
in God's name .... also note the nice POSSIBLE + PROBABLE head and shoulder formation developing on 4H. I deal in probabilities, but the wildebeest deal in certainties, therein abides the problem why we cann-ae be friends.
I thought you are a price only kinda guy, so you don't need an indicator in that case. Inflation trend is up. You must have seen some sort of divergence going on (guessing). Oh dear...
Watch 1370 low on 4H. It also happens to rest on the 200 ma (4H frame) A convincing break here is the SHORTY. Hammer that motherfucker if it happens - hammer it hard and add to shorty on every rally top. Get ready. Do not go short unless the above breakdown occurs. If it works out well, you'll know it visually because I'll put a lollipop in JSPMK's bum - with the wrapper still on.
I sense gold has reached a top despite all the news media trying to pump it today and talking of big demand. I will be bottom fishing options at this point. Question to experienced gold option traders: what options do you think is better? On futures, GLD or IAU?
OG (gold futures options) will give you better leverage and good premiums OTM (6-7%). I think you have to get into them about 45 days prior to expiration and plan to exit about 30 days later. They seem to lose their value quickly. Just my $0.02.