Worst Day For Gold…Ever
- Posted by TheArmoTrader
- on February 29th, 2012
There was some interesting action across the board today. Mainly, the metals were getting hit hard. However, Gold ($GLD) had a horrible day, on an intraday basis. Gold has had worst days percentage-wise in the past, however, today gold just fell out of bed. Looking at the most widely used ETF for Gold, which only tracks intraday trading, from the high to the low, gold had not only the widest range bar ever, but also had the worst day ever (from open to low).
The range today from high to low was 9.59 points. The previous biggest (and worst) range day was on August 24, 2011 where Gold had a range of 8 points exactly. But today that was outdone pretty impressively. Nothing about today’s action was not bearish. Note the difference there from saying it was “not bullish” (which could be more neutral). If I had a longer term position in gold, I would likely be buying protection (a hedge) for the short term on any gap up tomorrow. You can use either options, inverse ETFs (like $DZZ), or you can always short $GLD or $DGP. However, I would think options would be the best way to play it.
(And yes, I know Gold futures have had worst days and that the intraday times are different than $GLD).
$GLD Daily chart
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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