WHY WE WERE NOT SHAKEN OUT OF GOLD POSITION ON FRENCH DOWNGRADE RUMOR
This post was published earlier on ZYX Short Sell Change Alert
Yesterday gold broke a strong support at $1637 to $1641. From a fundamental perspective, it made sense because the auction is Spain had gone well.
Gold would have easily fallen to $1600 if it was not for the rumor of French downgrade. The rumor caused a rapid run up from $1632 to $1654. Many investors were shaken out of a good short position.
We were not shaken out for a number of reasons.
- We have 30 years of experience dealing with stock market rumors.
- The rumor did not meet the common sense test.
April 20, 2012