Market actions over the past three weeks have given rise to a change of tactic in my approach to the POG.
It looks to me as though gold is heading lower, ultimately to possibly ~$1,000 before a concerted and final rise. Gold looks heavily oversold at the moment and I'm planning to sell my short and take a long position with a trailing stop. This rise could go to over $1,300 before heading back. Many will think this is the big run up and might be repeated.
It could all happen very quickly and some traders could lose big time.
It's irrelevant that gold looks to be trending up or down. It doesn't matter and in fact might be a dangerous tactic to trade the trend. If you can't see the trend you can't trade it.
I'm still looking for bargain gold stocks but I might have to wait till next year. Other commodities just might follow suit
This is about the USD and interest rates and a market desperate for a return on investment. Next year is shaping to be a torrid wild ride.
That means careful trading will be very rewarding, just watch out for bear traps.
