I am looking to exit part of my long position in the streetTRACKS Gold Shares (GLD) at 70.80 today for three reasons. First, the GLD is up 8.5% since its 8/10 pivot low at 65.15, which if nothing else in a normal market would appear to be a bit overdone. Second, the pattern carved out within the upleg off of the August 10 low into today's high argues for a rest-digestion period. Third, I want to take a profit. If my near-term work prove accurate, then I will be looking to re-enter the second part of the position under 69 in the upcoming hours/days.



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.