Gold Breaks out To Record Price Highs

The gold price is once again behaving like a true champ and did a massive upside breakout to new lifetime highs today.  Best Online Trades was excited about the gold trade setup all the way back on April 7th 2010 where we said “we suspect that a big move is coming in the gold price and the GLD ETF”.

This is an important signal that should not be ignored and I think it is also very telling that the gold price is moving higher as broad market equities (except gold stocks) fall lower.

I would not be surprised to see the gold price shoot up $100 a day in either the days or weeks ahead.  Perhaps it would coincide with stage II of a broad market crash.  Or perhaps it would just coincide with general (not crash style) market weakness into second half of 2010.

No matter how I paint the scenario, gold looks superb going into the second half of this year.  Perhaps September of 2010 is a good time frame for the next peak in the gold price.  By that time it could easily be in the 1400 to 1800 range, perhaps higher.

So it appears that the Best Online Trading Strategy for second half of 2010 is to be long gold, long inverse bear ETFS and then cash.  Anything else besides those trades for the next 6 months will probably be a bad play.

There will be a time to be long the broad market again but I suspect it will not be until October of 2010.

Posted in Commodities, Commodity ETF, ETFS, Gold Market

Leave a Reply

Your email address will not be published. Required fields are marked *