Did any of you read any of the analysis that we posted in the Gold's Action forum? There are three of them. it's not a question of just being contrarian and shorting gold. It's a question of studying all information available including the charts. The bearish divergences on the chart tell me that gold will have a pullback. As I stated in my analysis (see link above) the last few times we've had the same situation (RSI on the verge of being oversold, bearish divergence) gold went down 100-200 pts.
BTW, there are much better foods to hold for long term needs than chicken noodle soup!!! ENJOY......... http://www.efoodsdirect.com/?aid=13 Oh.....and make DAMN SURE your vegtable seeds are NON-GMO!!! http://www.survivalistseeds.com/ http://survivalseedbank.com/ :eek: :eek: Your Welcome!
Is that a promise? Should I follow your analysis and go short GC or GLD? Tell me fast, I'm eager to pull the trigger mate...
THERE IS RISK OF LOSS IN FUTURES TRADING. Those using this information are responsible for their own actions.
What asset classes are you talking about here? In FX, a 100:1 leverage will earn you 100% of your investment on any move of 1%, long or short. In futures, you can't have that high a leverage, but the logic is similar. No need to let your hair go gray waiting for 50% decline, or gold doubling in price.
My analysis is also short gold....the gold/oil ratio and the silver/gold ratio is way, way out of wack.....reversion to the mean is what comes next.
And look at where the dollar is in relation to other currencies - a total disconnect with gold. This gap is unsustainable.
Disagree. It's the factor decomposition of the assets in the asset-pricing models that count here. Silver and oil probably have heavier industrial components than gold and less of a safe-haven component, so the ratio is supposed to go out of wack. Anyone pricing this based on the decomposition of factors and fundamental models knows that gold is worth more. Mean reversion may happen with regard to one factor, but not all factors. I hate to antagonize people, so don't take this personally: you shorts are going to lose your shirts on gold. I'll revisit my assessment if I see in dramatic shifts coming out of the factor decompositions.
A lot could happen to derail the current ST trend. But IF it continues, based on the weekly chart, I won't be surprised to see GC around 1080.