Well, it hasn't been a great morning. One bright spot – the only bright spot! – for me is my short position in GDX, which itself is down over 5%.
My problem with gold has been that I didn't really buy into the notion that an inverted head & shoulders pattern had use at the top of a chart. Perhaps I was wrong. I went through a number of my favorite trading books last night, trying to find if the IHS pattern was used as a bullish pattern at the top of markets, and I found no such citation. I'm still not completely convinced.
However, if it is applicable, GLD certainly has a nice pattern. A drop to about $1060/ounce or so would be a great entry point. I'm sick of not being on the precious metals bandwagon. If gold can get its way back down to that level, I'm joining the party. A move to $1300 and above seems altogether reasonable.
