CZ trading at 5.60, US dollar going sharply higher and its going to put pressure on commodities.
Take profits on Short from 5.68 and move stops down. I still want to play CZ from the short side unless we settle above 5.75 two days in a row.
The short position in August Gold turned into a gift. I had put it on when August was trading at 1375, I had thought we would trade down to 1350 or 1340. I did cover half my stuff between 1350 and 1340. Luckily we got a kicker down to 1285 for a bonus on the other half.
As I write this, we just traded up to 1300.
I can’t imagine the gold traders of the world are done selling off, especially going into a weekend tomorrow. I want to stay short, but with buy stops. Worse case scenario, we are going to have a profit of at least 50 points on the last shorts. I have no idea where the bottom is in August Gold. 1250? 1200?
Thankfully, I had stops in my Dow longs. we have still are long against 14,825, which was a 38% retracement of the move which started at end of February and peaked out at 15523 on May 22nd.
The low of 14835 seems like its going to be tested. If that fails, we should see 14,610.
Sometimes, like in this gold short, its better to be lucky than smart. I had thought we could have short 25 tick winner. Luckily, we got a good kicker due to Mr. Bernanke and the Gold Bugs who are caught long and wrong.