GLD (SPDR Gold Trust) - FreeStockCharts.com
Jim Cramer Likes Gold ($GLD), Gartman Sells Anticipating Pullback
5/18/2010 12:04:00 PM | via @Dvolatility |
Jim Cramer on Mad Money yesterday (video below) gave reasons to own Gold and said it could be headed to $2,000oz. Dennis Gartman of the Gartman Letter advised clients to "rush to the exits", anticipating a technical pullback (CNBC article). They are looking at two different time frames I believe. It makes sense that traders would get scared at the December 2009 high ($119.54) and flee back to home base (support), forming a double top. Traders might re-evaluate another breakout attempt at the 50DMA or uptrend support level. If that uptrend from late 2008 gets broken on strong volume I'd be careful with protection (IMO). I don't think we've seen the official parabolic move in gold yet (being only 20% above the March 2008 high, before the crisis/FX printing spree?) but that's just me. A spike in Treasury yields would take my attention away from gold though on a structural basis. Right now I'm watching the US Dollar/Gold (UUP:GLD) ratio and FXB:GLD, FXE:GLD etc. Boo yaahh... Below is a chart of $GLD and the Mad Money video courtesy of CNBC.com.
Posted by D Volatility