Click chart to enlarge It was exactly 2 weeks ago today, with GLD trading at $109 that we said... "We're not saying it can't go higher, but that if it does, it will inevitably return to its current price sometime in the next few months. In other words, it isn't about to get away from any potential buyers at this point. Don't chase it."
The concept behind that post was that stocks only move so far away from their averages before they return to them. There's no harm in selling when a stock moves far above its average. Or at least lightening up as it advances into the nosebleed section. If you have the patience, you'll be able to buy it back again at the same price, so there's no risk. If you're lucky, it may just drop the day after you sell, setting you up for a nice trade. Beware of tax consequences.
As for the future of Gold, it hasn't broken any trendlines nor averages. It's still in an uptrend, trading above an uptrending moving average, so it is not a short candidate. If it moves lower from here, support is in the mid 90's. But it has already corrected approx 10% from its highs, so the worst may be over for now.
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