Covering Your LONG Gold

Hi Folks,

I am recommending that you exit your long GOLD positions before Friday's jobs report. Although the dollar has not sold off yet as I think it will, GOLD has performed enough for my liking. I use DZZ(double short GOLD) and DGP(double long GOLD) to play the Gold market. If you had followed my recommendations for shorting GOLD on November 27 and then getting long GOLD on February 5, you would be up over 60% in 3 months. Although GOLD still looks like i may have some legs I am not willing to take he chance. We could see a pop in the dollar on Friday depending on the report and we will have to wait to get long GOLD if that is the case. I am NOT recommending shorting GOLD here but I think it is prudent to take your gains off the table.

I am still short term bearish on stocks and the stronger indicator's there lead me to believe the dollar may have a short term rally. I would not be surprised to see the DXY hit the 50 day MA(79.2) tomorrow and we should bounce off of that.

Thanks and Good Trading,

Tim Winters