If I were looking for a time and place to short gold, this would be a reasonable entry. So many gold bears tried to time the top and so many got broken by the steamroller rally. Like I have always written on this blog the percentage play tends to be shorting the rally failure after a top is in place. That way a trader might have resistance working for them.
With all that, the gold bull is still intact (chart), still above the 200 day-moving-average. Any shorting would be for the nimble trader, not for the long term gold investor.
Friday's employment report may produce some fireworks. Expectations are running high as evidenced by the stock market moving to new recovery highs into the report.
VIX (chart2) has been moving steadily down, down, down to a point of complacency. However, actual volatility is still coming in below the implied numbers. This means that selling premium still has been working. At some point this will reverse, but like calling the top of a rally, trading counter trend is not an easy game to make money at.
Long SPY, TLT
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