Thread: Gold dumps $48 in 1-minute

Gold just puked again - hit 1073 and change in over night futures trading, before bouncing. Is this the test of the lows (overnight low was about 1080)? Will it hold?

Originally Posted by tsptalk

Gold just puked again - hit 1073 and change in over night futures trading, before bouncing. Is this the test of the lows (overnight low was about 1080)? Will it hold?

Not looking good for gold bugs...

Originally Posted by RealMoneyIssues

Not looking good for gold bugs...

It tested the prior lows (1080), which is not a bad thing, and briefly flew down to 1072. If it can close above 1080 (currently 1082), that would be a good thing and perhaps considered a successful test and you may see buyers step up. Otherwise, a close below 1080 and 1067 may be next.

It just hit 1088, but the short sellers may pounce on this rally. Good test.

Originally Posted by tsptalk

I bought some NUGT after hours for 3.51. Couldn't resist. This won't be a day trade. More like 1 to 2 weeks. There are some extreme oversold readings.

This was in SentimenTrader Home last Thursday (7/16)...

Precious metals have been taking a hit lately, and that has reflected on the miners. Every stock in the HUI Gold Bugs index has traded below its 10 - , 50 - and 200 - day moving averages for the past two days, and on both days more than a third of the stocks have reached 52 - week lows. In the history of the index, this has occurred on 9 other days, clustered in four time frames (early September 2008, mid - October 2008, mid - May 2012 and late October 2014). They all occurred within several days of 10% rallies in HUI and other indexes of gold miners. They should be getting a reprieve soon, with any heavy selling in the coming day(s) likely to be exhaustive and quickly reversed.

Like I said, this was 3 trading days ago and now we've gotten the "heavy selling."

A little follow-up. I decided to bail on NUGT today selling at 3.57. This was a small gain after coming back from some stiff losses. I think it can hit $4+ and there's an open gap near $5, but I hate holding these gold ultra ETF's too long. I had a 13% gain after 1 day and that vanished quickly - so volatile. They are not good investments, just short-term trading vehicles as we've discussed.

Originally Posted by tsptalk

A little follow-up. I decided to bail on NUGT today selling at 3.57. This was a small gain after coming back from some stiff losses. I think it can hit $4+ and there's an open gap near $5, but I hate holding these gold ultra ETF's too long. I had a 13% gain after 1 day and that vanished quickly - so volatile. They are not good investments, just short-term trading vehicles as we've discussed.

I've been buying it for weeks at $3.00 or less and turning around and selling it, sometimes in the same day. If you buy enough, you can still make some good money.

Originally Posted by tsptalk

A little follow-up. I decided to bail on NUGT today selling at 3.57. This was a small gain after coming back from some stiff losses. I think it can hit $4+ and there's an open gap near $5, but I hate holding these gold ultra ETF's too long. I had a 13% gain after 1 day and that vanished quickly - so volatile. They are not good investments, just short-term trading vehicles as we've discussed.

Crazy to think a year ago, it was trading in the 40s

http://www.cnbc.com/2015/08/10/gold-...-fed-hike.html

Gold dropped on Tuesday as the dollar strengthened after China devalued its currency to prop up its economy, adding to the downward pressure on bullion from a looming increase in U.S. interest rates.