I have no idea why gold (the GLD) is rocketing today, especially after yesterday’s decline and close back beneath an 11-month resistance line – other than the fact that this is a strengthening bull market in the sector. Increasingly, for that reason along, perhaps I must refrain from trying to overly “fine-tune” the near-term wiggles in the GLD and consider remaining 50% long at all times unless and until a significant support zone is violated.

As for today’s strength, the GLD has popped to new 11-month highs, which if sustained throughout today’s session, will argue for a run at the top of the Oct-May channel near 71.

Only a decline and close below 67.70 will indicate that today’s strength was a bull trap – with a corrective process that will again visit the 66-65 area.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.