This is a supplemental post to my usual portfolio updates. I am making this post because I finally got a chance to do the math on the Gold ETF, GLD, and compare it to my previous posts. The information in this post is in reference to information recorded as of the market close on Tuesday, December 8, 2009.
Three days prior to the above mentioned market close, I wrote about how the Gold ETF, GLD, had already dropped 4.6%. That amount was only two-thirds of the way to my predicted sell-off amount. On the following two days, it continued to drop in price almost another 3%. The first day it gaped down and then climbed up, only to retrace one-third of the way back. The second day it drifted down, and then bounced back up a little.
The total over the past four trading days is a loss of a little under 7%. This puts it exactly on track with my prognostication. What we need now is a bounce. But looking back over the ETFs previous movements, it appears that it may actually pull back another 3%. This would be more or less a full 10% correction, an unexpected surprise considering all the economic bad news and hype of gold as a hedge against currency devaluation. All things considered, I am inclined to believe that another 3% is possible, but I am still of the mind that there is another bull move about to happen. That is my opinion, you can take it or leave it.
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