Open Thread

“There is absolutely no reason to sell at these levels.”

Donatella, do you have anything other than chart reading to back this up?

I am not married to a long gold position — I would sell it when the market tells me but there is no sign of weakness here. This is a relatively low volatility rally, solid and steady in contrast to other commodity markets, it is absolutely not a sale here. And of course there are many ways to sell, i.e. sell out your long ETF position, sell futures, buy puts, buy put spreads, sell calls or any combination. There is absolutely no reason to sell at these levels. For a person hell bent on shorting gold, I would buy put speads on futures on options — long volatility. But for a purely directional play. Not yet.

Just remember that you can’t short something as the initial purchase in the account and you need margin. Additionally, you can get a margin call if it continues to go up.

I’m sure your employer will allow purchases of other ETFs (long) and oftentimes they are just as good performers as mutual funds and the expenses & fees are far less.

Lech, I knew you’re a quick all-in type of aggressive guy.