Nov 182009
A lot of talk about gold being overbought, in a bubble, time to sell, etc.
For intermediate-term trading it’s simple from my perspective. I’ll get out of gold …
when GLD closes below the orange dots. And that hasn’t happened since June.
Speaking of overbought, Bespoke has an interesting item. Gold is reaching 20% above its 200-day moving average. Pretty pricey. Unless you compare it to 1980 when at one point it reached 136% above its 200 dma.
Don’t try to pick tops. Just stay with the trend until it bends.