Leading Off… Where Gold Appears to be Headed

May 06, 2014

Tim Reazor
Chief Investment Strategist
NorAm Asset Management

Gold found a bottom recently at the $1,288 price level.  This was a key level to hold.  After the anemic GPD report last week, coupled with a non-farm jobs- report that included the lowest labor participation rate in 30 years – gold is now off on running.

Running to where?

Gold needs to now hold the $1,300 price level and conquer the $1,315 price level.  If this occurs the stage is set for a move up to $1,332.  If the perception of the economy gets worse than gold has the potential to run up to $1,350.

What’s the play?

The easiest way to partake in this move is by buying shares of the gold ETF GLD.  You could buy calls, but that takes more active management on your part.  I’d use a 45 to 60 day time frame and calls with a delta of 70 at a minimum.

 

I’ll keep you posted on the move in Gold this month in this newsletter and on twitter.  You can follow me there by searching for my handle @TJReazor

 

If you’d like to talk about rule based investing, where the markets are headed or if you would like to join us for our trading / investing open house please email me – Tim.Reazor@NorAmAsset.com

 

Best Regards,

Tim

 

The information presented is for educational and entertainment purposes only.  Opinions and information expressed are based upon information considered reliable.  However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.  

Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.

 

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