GDX:GLD ratio on the verge of giving a sell signal

    Posted by junkmaylbox on 20th of Feb 2009 at 10:48 am

    The two MAs (7 & 21) are equal at the moment. I went short on GDX and AUY.

    http://stockcharts.com/h-sc/ui?s=GDX:GLD&p=D&yr=0&mn=9&dy=10&id=p50517984652&a=141880679&listNum=8

    I hope you are right shorting

    Posted by dallassteve on 20th of Feb 2009 at 11:02 am

    I hope you are right shorting GDX before the averages cross.  I am thinking the same way.  I took a small short position yesterday at 36.6.  I am looking to add to it if the averages cross.

    GDX:GLD ratio

    Posted by junkmaylbox on 20th of Feb 2009 at 11:18 am

    The $gold is topping today, it bounced off the $1,000 per ounce. I don't see much upside for $gold here, it must consolidate first to make new highs. I am willing to lose 5% on this trade if I am wrong here.

    I'm with you.  Thanks for

    Posted by dallassteve on 20th of Feb 2009 at 11:25 am

    I'm with you.  Thanks for posting your thoughts.  I guess I qualify as a gold bug, but gold needs to consolidate here.  Matt did not tell anyone to short gold, but he has been talking about the gold pattern for a few days, and the charts are very clear.  I think it is not Matt's style to give a recommendation.  If we are not smart enough to read a chart when he puts it in front of us, we don't need to be trading.

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