Interfestering

It has hardly been a few days since I posted my bullish thoughts on GLD, but what a difference a few days can make… With such a sharp run up in GLD, things looked good this morning as it continued to make new highs… but there was a sharp sell off today, but more importantly, it was on HIGH volume… FOUR times the 3 month average. This is not a good short term sign, and I will be monitoring this closely with the expectation of cutting my gold position in half. Though I still feel it is a very good place to be in the long run, the recent price action has gotten a bit ahead of itself, and with the Fed Futures already pricing in a 50 bps cut, I can only assume such expectations are baked into gold as well… Long term investors shouldn’t be too worried, but it looks like the short trade is more viable in the near future, probably indicating a new consolidation range. This will also have a negative effect on the more volatile miners with whom I have placed much faith… needless to say, I’m not trading to be right, but to make money, and thus it may be prudent to take some profits off the table and watch from the sidelines… This mean I will be cutting down on silver (SLV), DBP, HGU.TO and GDX if negative price action persists, all of which I have had a great run with over the last month… I expect GLD to move to 83-84 over the next few weeks.