Good Afternoon,
I have a reference that Monday was the day to protect gold. I was sitting with a client and we talked about hedging strategies. Remember, hedging isn't for everyone, but in my "later years", I value the value of cash and the run up that Gold had was too far too fast and even if it keeps going, you have to say: "this is a great run, let's use that to hedge our downside a bit."
Case in point, the following charts. GDX, GG, SLV:
Past performance is not indicative of future results
Past performance is not indicative of future results
Past performance is not indicative of future results
I also took this opportunity to put on a light hedge using the broad indices. I am not convinced that the lows in the SPY will hold, so after a really strong month last month of hedging gains, it was silly not to put on just a taste of protection.
Fireworks will keep coming with claims, Bernanke, etc...
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
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