I just went long the November GLD 170 Call Options at 3.30. I think gold is about to bounce back up to the old highs like a boomerang. We are still in the very favorable seasonal time frame for precious metals.
Yes, September was a disaster for the precious metals which is astonishing since it is usually a superb month statistically. But now I think gold is kicking the dust off its boots and wants to play catch up topside again.
There is still a gap fill at 173 and change on the GLD.
I still think gold has a good shot at blasting up and through 2000. Whether or not this happens by the end if this year is unknown, but gold does seem to have a habit of delivering Christmas presents right at or near the end of the year.
As long as this gold bull is still alive trading call options on the GLD may be a nice way to go if can get good entries on massive weakness. Why? Because the predominant bias is still UP until further notice…
I will have to do another update on the long term chart of the US dollar index soon. I think a lot of people were expecting the Dollar to stage a huge upwards and sustainable rally. This does not appear to be the case now from what I am seeing. It was on the verge of doing so and starting a new bull run, but most recently it really screwed up the bullish scenario.