Gold

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The big bond sales in part spurred a sharp spike in the price of gold to above $1000-an-ounce. Shares in SPDR Gold Trust (NYSEArca: GLD) were rising 1.2% in pre-market trading to 98.70.

Technical traders in Asia are recommending shorting the gold price when it breaches the $1000-an-ounce level, however.

In a weekly technical research note which correctly predicted Tuesday’s jump over the benchmark level, Martin Marnick, a director at Hong Kong-based Helmsman Global Trading, tells the firm’s hedge fund clients to take advantage of a temporary bump in prices.

“Sell and short above a 1000. A quick pullback below 940 [will ensue] before November, which then recovers,” wrote Marnick.
( this analyst said it on 9/8/09 )

asr note: see MCRI gold seasonal chart it shows seasonal exit 9/21 and DROP in price next 1 month. see it is confirmed by above recommendation.
- one good strategy may be selling expensive OPTIONS at 1050 level of GOLD price

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Consider the Hulbert Gold Newsletter Sentiment Index (HGNSI), which reflects the average recommended gold market exposure among a subset of short-term gold timing newsletters tracked by the Hulbert Financial Digest. As of Monday night, the HGNSI stood at 36.8%.

How do the investment newsletters I monitor recommend that you take advantage of any gold rally?

Exchange-traded funds (ETFs) are far and away the most popular investment instrument. Currently, for example, no fewer than 16 of the newsletters I track are recommending the SPDR Gold Trust) , each of which is currently recommended by six newsletters.