Site Meter The Lawyer Trader: Rally in Gold

Tuesday, January 20, 2009

Rally in Gold

My short position in Gold was stopped out early this morning...apparently the boys in London think that the economy is going to get worse and that gold will be more desirable, at least that's the story. All I know is that it looked like it was ready to tank and then it rallied.
Fortunately my Eur/Usd short went as planned and the dollar is continuing to rally against both the Euro and the Pound. For now, I will stay out of Gold until it calms down. As a rule of thumb, I get out of a position when I am confused by the instruments price action (like the rally in gold). If traders fade this breakout, which is tempting but very risky, and gold falls back to the 840's, I will probably put my short back on.

Good luck out there.

TLT

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