A Gold Update

June 20, 2006
Technical Analyst & Editor

From the emails I've received in the past few days, it appears that I may be one of a very few who is currently short gold and long dollar. That's alright, I'm not big on crowds. I realize our bearish position on gold is not a popular one, although it is a profitable one. I love the gold sector, but I'm not in love with gold.

This is a quick update on our current positions for those who follow our work.

GLD - US traders are short from $68.15, added more at $64, and we shall take partial profits on a close above resistance ®. Currently up 17%.

FHG163 - Canadian traders are long this gold bear fund from $10.68, take partial profits on a close below support (S). Currently up 40%.

RYSBX - we are long from $25.14, take partial profits on a close below S.

Our breakout model broke down in May, confirming our sell signal and nothing has changed since then. According to the model, the only viable positions for traders are either short or cash, holding gold stocks without a hedge could be very hazardous.

 

Jack Chan at www.traderscorporation.com

20 June 2006

 

Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

The King James Bible mentions gold 417 times. Not once does it mention a paper currency.

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