Keith covered our short position in the gold etf GLD this morning at $149.02 for 4.9% gain.
He remarked on the trade, "Booking another gain in gold. Across 26 long/short positions taken since 2008, we have been right 89% of the time in GLD."
GLD is immediate-term TRADE OVERSOLD with support at $148.98; TRADE-range resistance is up at $154.92 (4.2% upside from the current price). Given, risk heavily outweighs reward in being short GLD at the current price on the immediate-term TRADE duration.
On our intermediate-term (3 months or more) TREND duration, GLD is bearish with resistance at $165.91. We will continue to trade gold with a bearish bias as long as it remains broken on our risk management durations, and the current inverse correlations with the USD persist. Gold currently has a -0.91 correlation to the US Dollar Index - the highest that correlation has been among all durations up to three years.
Kevin Kaiser
Analyst