Is this the end of the Bearish Gold

Update

As expected, support holds.
I entered @1259...
Wait for the resistance @1310 to break.
If 1310 breaks, champagne! Look at the LT graph.

goldfeb2014.gif


LT chart (last 3 years)


gold LT.gif
 
wwatson1 said:
What are you going to do if it reverses?
More...
For the moment this is a small bet : 1 pct of my capital.
If ounce go below 1240 I will take my losses, and will reenter near USD1100...
But if ounce go above 1300, I will pyramid and increase my bet to 2 pcts, maybe 3 pcts above 1350.

Wait and see...

Chris Mac
 
Why don't you hedge the position? Instead of taking a loss, you could hold your long and depending on if you think it is a genuine reversal or just a hickup take a short direct hedge to lessen you exposure
 
wwatson1 said:
Its not about being right or wrong, its about repositioning and adjusting to the conditions[/quohen I am wr
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wwatson1 said:
Why don't you hedge the position? Instead of taking a loss, you could hold your long and depending on if you think it is a genuine reversal or just a hickup take a short direct hedge to lessen you exposure
More...

Elementary, my dear Watson.
Why should I hedge when I am wrong and I lose money?
I prefer to get out as fast as I can, not being involved any more, and wait for a better price.
If you hedge, you lose flexibility and neutrality.
I will add that keeping an hedge is not "a free lunch", and the more you keep it, the more it costs.
Moreover, there is no perfect hedge. Particularly with illiquid assets, like Gold.
An hedge is supposed to work in normal conditions (low vol, no gaps). This is not the real world my friend. How many traders and hedge funds blew up because their hedge didn't work?
Believe me, when in doubt, get out. I saved lots and lots of money thanks to this basic rule.

Chris Mac
 
Ouch that hurts!
I am out... My stop was @1239... This is the game.
If gold rebounds strongly, maybe back above 1260...

Chris Mac
 
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