Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Friday, September 26, 2008

GLD Chart for Red-Hot Commodity ETFs

Here's a chart I was unable to include in the Red-Hot Commodity ETFs issue that went out this morning. Naturally, when I'm trying to send out an issue, there's a computer problem.

If you think the US dollar has another leg down -- and I do -- then GLD shows real potential. If we are seeing a 'bull pennant' pattern, then it's best to remember the old saying: "flags and pennants fly at half mast." That would take the GLD up to 96 or so.

There is a more leveraged way to play gold, the DGP, but like everyone else, I think it's best to limit our risk at this time.

And remember, I could be wrong. The US dollar could take off like a rocket and gold could crater. Why? Because this market is plumb crazy, that's why.


Check out my new gold and energy blog at