I sold gold (gld) as a pre-emptive move. Reason for selling:
1. Regulators are threatening to raise margin requirement.
2. Gold is vulnerable at these levels in light of the steep market sell off today.
3. Price declining.
4. We can always buy it back (never fall in love with an investment.)
5. Gold my be sold off as liquidity is raised to meet margin calls.
Gold timing chart
Gold in overbought region - good time to take profits given the fact that the Gold/US Dollar ratio is rising.
The Dow was down more than 500 points on the day.
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.