Gold looks ready to resume dropping, so I bought some DZZ (2x Gold inverse ETF) around $20.20 with a stop @ $18.00. I think gold could test 800.
The daily chart above shows my interpretation of price action over the past year. I think we have completed WaveA and WaveB of a flat correction from $1028 in March 2008. It appears that Wave-c of WaveB was truncated (meaning it did not make a new high), and now gold has started to downtrend once again. I'm shorting the Wave-ii of WaveC correction in hopes of further drops in price.
6 comments:
i hear ya
DZZ's not worth it. I would recommend puts on something. I like putting GDX. Though it moves differently, it's a great stock to chart.
Good luck!
Why, what's wrong with DZZ?
Decay.
what about the long term IHS on Gold?
Good point, that is why I have a stop if gold gets above $1000, which equates to about $18 on DZZ.
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