Friday, July 18, 2014
GLD, GDX etc - last thoughts before market close
Do I buy back my Rio Alto before the close? Or not?
I dunno. GDX still looks like an uptrend. The short EMA violation reversed completely, and that's a nice candle to end the week. It might still be topping, but it also might still be correcting before another leg higher. Do you want to wait for a new high to print? That's always the question. Isn't it good to buy at RSI=50 after an overbought condition?
But the three line break chart looks like crap unless we close above $27.20 or so.What to do?
GDXJ looks good too. The bad % loss today is only because it took off so strongly yesterday.
And yet GLD's chart sucks. That does look like a bear flag, all it's done is reverse at the SMA(50), it's still below its short EMA and the attempted cross of the EMA yesterday failed.
Then again, gold was slammed several times this week to the tune of $4B notional. When are they intending to buy that position back? After opex?
SLV also doesn't look as good, but considering it was also slammed this week, it's still a darn strong chart. And now that crazy overbought position in RSI has been worked off.
So do I buy back more Rio Alto at the close? Or not?
It's not an easy decision, like shorting $VIX at +3SD.