Jim Cramer Likes Gold ($GLD), Gartman Sells Anticipating Pullback

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.

GLD (SPDR Gold Trust) - FreeStockCharts.com

Comments

  1. God is phenomenon, gold is an anomaly. To find way for financial crisis exit strategy turn to extensive god Zi, don't rush to intensive door, you can stuck by sticking to gold, this is not Mido economy but zikalkis prokonomy. Proconomy should be recognition of productivity of god's nature working forces (nobelators) and calculating it in the economic system as known today. Thus drawing rights for establishment of the new world reserve currency ( 1 Zbix = 100 Dollars = 10 000 Cents, where as Dollar is appreciated hundred times )

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  2. When did the Jim I know become a trader who only listen to market gossip and not market fundamentals?

    The European Monetary Union was created to have a stable currency, to stop inflation. The Global economy is so bad right now people put their money in gold instead of investing or spending. Companies and households, are all tightening their belts. Everything points to deflation.

    Whats more? The bad news nowadays only send gold prices up very little and for a very short time. This would mean that the market is saturated: all who is ever going to buy gold have already brought gold. There is a shortage of new buyers.

    No matter how hard you preach Jim, 2K an ounce is not happening. You eyes are all red. Your emotion is doing your trade for you now. If you listen to yourself on how you are not getting into US steel, those same reasons would tell you to run from gold.

    I am not saying gold is not valuable but, at least rigth now, is over overbought.

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