Everyone is talking about gold and the gold ETF (GLD), which is supposed to mirror the price of gold bullion.
Gold had a huge day on Tuesday, and while the contrarian in me says that when everyone wants in, it’s time to get out, I can’t argue with the chart.
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A breakout that big accompanied by huge volume can’t be ignored. Keep a short leash on any GLD trade, but at this point, the next stop on the GLD train looks to be in the $120 range.
Just beware that profit takers could wiggle it around quite a bit during the climb. Set your trailing stop to lock in any profits.
By Tim Bourquin, trading content director, MoneyShow.com
