Going for $GLD
Since mid December 2008, GLD has been making higher highs and higher lows, signaling an uptrend. Volume is increasing on up days, and diminishes during down days, conditions ideal for investors. Coupled with technical strength, the fundamentals look good as economic turmoil and government stimulus drive this investment thesis.
From a risk management perspective, a move below 85 would be cause for concern, but light volume pullbacks to the trend line offer good risk/reward. Psychologically, gold bugs are a nervous group, and those who bought gold at $1000/oz. are motivated sellers, so know your exits before you enter the trade.
Gold appears to be overbought in the short term, but I’m feeling good about the long term prospects of this shiny metal.