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GLD - Why the big dip?

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Regular Contributor
Why the big dip now? Thought the markets are edgy, so surely gold should be up?
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Valued Contributor
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Not applicable
I don't know, but if he keeps calling me 'shirly' I am going to bob him one
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Valued Contributor
isn't it shirley ??
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Super Contributor
Its called "profit taking" after one of the long runs on GOLD.
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Valued Contributor
huh, shirley is profit ?? when did she change her name ??
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Shirley is often spoken in vain, when events are inexpicable (for example, why prices inexplicably retrace from all time highs) - as in Shirley not! Why, why, why?? Please explain. And since please explain is often used interchangebly with "Simon please explain", we can logically deduce that Shirley is the OST pseudonym for Simon.
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Regular Contributor
Oh ok sorry, let me rephrase the question then. Why the big dip now? Thought the markets are edgy, so SIMON, shouldnt gold be up then?
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Super Contributor
Dude, Gold went parabolic. It was a very crowded trade on the long side. All moves like this end with violent corrections. Add in a margin hike and you have a repeat of what happened in silver earlier this year. Wait for the chaos in the gold market to subside (I would GUESS 2-3 weeks max) Then reenter as the orderly rise continues.
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Regular Contributor
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Super Contributor
looking for reasons why counters do what they do (especially gold)"? Technical: Just take GLD and calculate the price difference between the 200 SMA (R98) and the closing price at R135 you get a difference of 37%. In Feb 09 the difference was 33% followed by a 35% correction, in March 08 the difference was 50% followed by a 33% correction. Fundamental reason: Comex has increased margin requirements on gold by 27%. GET IT.
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Super Contributor
It's all smoke and mirrors to rob you of your shares.
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Regular Contributor
ah ok, making sense now. So we are looking at another 30% odd correction again before it starts to rise?
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Valued Contributor
actually when I joined OST and they issued a press release it called me Simone .. must have been the hair ..
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Super Contributor
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Regular Contributor
Thanks for that link, it was very interesting to read. Will wait unitl Monday to see which way gold will swing.
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