GOLD pivots 2/24/2010

[ask2lern]

Morning Gang…………………Looks like the China IMF news put a bit of pressure on gold…normal occurrence ………here are the pivots for today………..

R4 1151.50
Mid Point 1143.85
R3 1136.20
Mid Point 1128.55
R2 1120.90
Mid Point 1116.80
R1 1112.70

Pivot Point 1105.60

Mid Point 1101.50
S1 1097.40
Mid Point 1093.85
S2 1090.30
Mid Point 1082.65
S3 1075.00
Mid Point 1067.35
S4 1059.70

Looks like it hit 1090ish twice this am and it held might be the area to watch……….Mikey you know you can hold physical gold in a self directed Roth/Traditional IRA……..send me a pm if you want additional information……..And there is always GLD………………Hope you all make some $$$$ today…………..GLTA

PS Mikey very nice TA on the 1100 gold thread……..I don’t do much TA other then the pivots and know the ranges because I do not trade gold on a ST basis……………If I was I would be trading today using 1090 as a long entry(ya know long = 10-15 minutes)………..LOL

[kingdisco]

found good futures site for pivots as well. but i don't believe you trade those rigth?

anyway.... hmmm i don't know... i' m still on the fence here i think we can see down a bit.... as always depends on dollar/mood. i'm willing to conceded it can go up or down. HA!

[ask2lern]

Hey King......no I dont trade futures but I do use contracts to hedge large positions.............................GL

[kingdisco]

Feb 24, 2010 7:48:46 GMT -5 ask2lern said:

Hey King......no I dont trade futures but I do use contracts to hedge large positions.............................GL

gold futures bounces around pretty erratically just now caused me to...

[Mikey]

Thanks Ask, would love to hear about the physical gold in the IRA - my e-mail is [e-mail] - I've mainly used CEF and the miners as my vehicles to play the metals but would love to hear about other options. As I said to King I've also done a bunch of research on gold futures and trading options and will write up my notes from the Traders Expo that I went to in NYC last week - maybe this weekend.

And when I mentioned buying gold in my retirement, I more meant my company 401K. Our main options our index funds and targeted retirement date funds, with the only conservative options being gov't money market and bond funds, which underperform. I do, however, have the option to borrow against my 401K and invest those assets elsewhere. I did this to pay for my wedding almost 5 years ago and have almost paid it back - it's paid back through payroll deductions and the interest is paid to yourself. The only drawback to the loan is that in a rising market you can miss out on appreciation - but as long as I'm investing the assets elsewhere and not spending it on a luxury car or some other crap I think it's a solid idea.

The monthly chart below on the dollar index is one reason why I'd consider an entry in the $1,075-1,100 range and not hope/wait for it to go lower. Until we clear and hold $81 on the index, I'm not convinced this dollar rally is "real" - it's been my contention all along that the recent dollar strength is not a reflection of our economy bouncing back, or our currency being strong - it's more the "safe haven" myth that we are the lesser of the evils/problems out there, especially in the UK and Europe.

In a pure technical sense, closing the month above $81 this Friday would be extremely bullish for the dollar and would lead me to hold off on an entry until the DX hits $84-ish and gold hits the $1,000-1,025 area. At that point I'd throw all my money, all my parents money, and anything I can borrow at gold and get everything out of paper assets as I think the Fed will likely print and prop until they can't sustain it anymore and cause yet another bubble to implode.

[Mikey]

Here's a longer term (and more depressing) view of the dollar - shows the damage that printing presses and artificially low interest rates can do to the value of a country's currency. The chart below covers 2002-present, just over 8 years. I see the absolute ceiling on the dollar index to be $85 which is roughly the DX's moving average over that period of time (90-month MA to be exact).

[kingdisco]

mikey i do agree longterm dollar = the suck.

but i think we get a little more squeeze out of the dollar. 1 month. lol (i don't know why i bother giving projections they all suck.)



lol let's improve my odds. 1-2 weeks.

[ukarlewitz]

Note GLD gap fill this am - 107.04. Bounce.