Tuesday, June 23, 2009

Looks like the precious metals plays are going to get flushed today - or are they?

When trading these metals all I can say is watch your size because they are volatile enough that you can get chopped up pretty good and end up missing moves if you try to jump in an out. However, these broke their 50 DMA yesterday so you also have the technicians getting into the selling today. Therefore you will have people saying GLD is going to 85-86 or the 200 DMA. I would not wait to buy at level and am not selling but did buy some out of the money puts yesterday for protection in case we really pull back (remember i own GLD, GDX, SLV so i am reasonably exposed to precious metals and they all broke down yesterday, but it could just be clearing the weak longs out for the next run up).

After market update - better finish for the precious metals than I thought might happen. TBT long looked good but came back in, although I am still holding for a swing into month end. Also, going to look at OIH for a possible long tomorrow.

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