Time to Short Gold.

I was looking at the weekly chart of GLD and touching 15-WMA. I don’t think it will go much higher from here because it’s been going up on low volume and near resistance. My plan is to buy DZZ tomorrow if it provides me a good setup.

ABX Research

ABX is down 24.53% since 03/14/08 and I did some study on other occasions when ABX was down +20% before it bounced.

09/24/02 to 10/10/02: -24.02%
04/02/04 to 05/10/04: -25.33%
05/11/06 to 06/14/06: -25.90%
09/06/06 to 09/15/06: -23.46%
11/07/07 to 12/20/07: -22.36%

GLD

GLD been down 4 days in a row and if it gaps down tomorrow morning I will buy some GLD for potential turnaround.

Positives

• Near 15-WMA.
• Down 4 days in a row.

Negatives

• Might be catching a falling knife.
• Not heavily oversold.