Follow the Bouncing Buck
I recommended subscribers who are following my "Golden Parachute for 2009" bank HALF their gains on their open positions yesterday. They were double-digit gains. It was time to grab some gains because the US dollar bounced from Fibonacci support. See the dollar chart below.
I think the buck could bounce to 84 from here, where it will run into A) price resistance, B) overhead fib resistance and C) declining moving averages.
I’m sure some people will look at the buck rising from oversold (see the RSI indicator on the bottom of the chart) and say, "the buck has found the bottom." We shall see.
If I'm right and this is just a temporary bounce in the buck, we'll get a great opportunity to go long gold again when/if the US dollar tops out.
Right now, gold is down over $20 an ounce, so yesterday's decision to grab gains looks like a good call.
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