While I predicted a move to $1,200-$1,300 on gold, many hedge funds have been buying the metal constantly. With the leverage these funds utilize, mass losses and redemptions may drive many out of business.
I like gold down here now for a short-term bounce. I'm in the SPDR Gold Trust (ETF) (GLD) and looking for a multi-day bounce. In addition, the gold miners are looking extremely attractive at current levels. This is a final flush and likely a great buying opportunity. Look at players like Newmont Mining Corp. (NEM), Barrick Gold Corporation (USA) (ABX) and Royal Gold, Inc. USA) (RGLD).
The FInal Flush
The low of the day on the GLD happened around 11:10AM ET. Note the massive volume. This is called 'capitulation' or the 'final flush'. Also, an interesting factor is that the gold miners never made lower lows at this point from earlier in the morning.
As the market starts selling harder, gold has also seen a bounce. Note the turn back toward the commodity as the market money exits.
Amazing action in the metals today. As a day or swing trader you should be cleaning up. Profits galore.
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When Precious Metals Tank, It's Time To Go Shopping
Published 04/15/2013, 12:48 PM
Updated 07/09/2023, 06:31 AM
When Precious Metals Tank, It's Time To Go Shopping
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