Back on April 1st, I commented on GLD getting pommeled, when it was down 4% on the day and trading under $87. I had the following game plan: "Sell any strength. People are dumping this hard. I don't think it will find any supstantial support until it falls into the $75-$80 range."
GLD actually made an impressive bounce during the first two weeks of April, making it all the way up to $93. For a few days there, I began to think my bearish call on GLD was incorrect; but last week GLD fell all the way back down to $87. If only I had followed my own game plan and sold into the strength. Nevertheless, I am still bearish. The 50DMA is turning negative, and will weigh heavily on the stock.
The New Gameplan:
Continue to sell any strength. If GLD closes below $87, sell that too. Conservative Stop: $91.50. Riskier Stop: $94.
No comments:
Post a Comment