Dear Member,
Gold’s trading lower again this morning, and has slid below support at the $1,315 and $1,312 levels. I need to see the close today. A close below $1,312 would add further downside pressure to gold heading into next week. If so, I will opt to add some bearish positions early next week.
Keep in mind the volatility you are seeing, as noted in yesterday’s issue, is part and parcel of the bottoming process. New lows heading into January cannot be ruled out.
That said, right now gold is basically in no man’s land. To avoid new lows come January, we need to see gold close back above $1,312 today, and then rally to take out closing resistance at the $1,352 level.
This morning you should have been stopped out of your shares in the PowerShares DB Gold Double Long ETN (DGP) for a very modest loss of roughly $205 for a 100 share lot, not including broker commissions.
That stinks, but keep in mind the key to successful trading is losing small to win small, and losing small to win big. Put another way, losses are part of the territory. As long as you keep them small, over time, you will succeed.
Be patient, disciplined and stay tuned. Today’s gold closing is important. Look for a new trade come Monday morning.
Best,
Larry
