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I continue to look for a short term drop in the price of gold and so I doubled my position in DB PowerShares Double Short ETN (DZZ) at $8.44. I simply am using the techniques of interpreting the True Strength Index (TSI) indicator that have brought me this far successfully, but will quickly admit that at this point I am trading with faith that I understand what the TSI is telling me.
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Gold continues to be forming what appears to be a midpoint consolidation of a parabolic run and what also resembles a pennant pattern. When this little episode concludes I will certainly want to reassess whether I missed clues that were unique to pennant formations, as this is my first experience with trying to manage that particular land mine in real time. Honestly, gold and silver appear very bullish and if/when the US Dollar begins to drop, I've got to imagine that will be fuel to the parabolic fire.
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Click on the chart to ENLARGE
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My TSI Trading record has been updated.
Nov. 23 Weekend report
1 day ago
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