After Monday's monster move down we needed some kind of consolidation.
This level should hold now as the dollar continues its rally.
We have to get prepared for the dip buyers. The big funds will be positioning on this way down for a long term hold (3-4 years) in gold . They might come out of the shadow and start to buy at every oversold point of the chart.
I see internal weakness in gold. And DUST almost in 0...
Holding all XAUUSD short positions and DUST long positions.
Could someone sell into this 100.000 contracts please to break it down?
1. Buying individual shares : for example Barrcik gold, ymana gold etc.
2. Individual shares are risky: some of them will run some of them will fall. But you ca buy the whole sector if you are buying GDX.
GDX is and ETF. The Fund seeks to match as closely as possible the price and yield performance of the AMEX Gold Miners Index. If you are buying GDX is similar if you go long in all of the holdings what GDX has :http://www.marketwatch.com/investing/fund/gdx/holdings .
3. If this is not enough you can jump into an 3x ETF . GDX's 3 ETF is NUGT. When GDX rallies 3% NUGT rallies 9%. You can go long in this when a big move is starting : like in january this year.
DUST is the inverse fund of NUGT. When you are buying DUST is almost the same as you short NUGT. It's a 3x ETF also.