Things to like1) a series of higher lows
2) the trendline of lower highs has been penetrated
Things to see for confirmation
1) any pullback is bought
2) price prints over October 2008's highs, signaling the end of "lower highs"
When last we looked about 6 weeks ago [Dec 11: Dollar v Gold - Can we Trust this Change?] , it was just another headfake - this formation on the chart does look more promising.
These are 2 names; one in gold and one in silver we've had our eyes on.
Or just play it simple and go double long gold
2 comments:
With stimulus dollars flooding the system (and more to come) Gold does seem to be an attractive allocation right now.
What is your experience with the leveraged ETF's - the negative ones have gotten a lot of flack lately and are really only useful for short-term trading. But are you finding the positive "doubles" to hold up well over the long run?
also - really like the new site design!
Zach
Zach, same issues on the double longs
These should have a black box warning on them and say "only for daytraders"
I see a lot of people (who like me @ one point) think they can hedge long term with them; they will find out, like I - that you can be 100% right in price and direction but still lose. Basically they are for sugar highs, not long term nutrition. I have not looked at 2x gold but looking at URE and UYG they are just more evil product.
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