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February 22, 2022
Barrick Gold (GOLD) ran from $19 to $23.14
Newmont Corp. (NEM) ran from $59 to $67.67
Royal Gold (RGLD) ran from $100 to $120
SPDR Gold Shares (GLD) ran from $167 to $177.12
All as gold prices ran from a low of about $1,817 to $1,900 on the Russia-Ukraine issue.
While the run has been impressive, you may want to consider shorting gold, as well.
While gold could test higher highs immediate term, it may be a good idea to start pushing into the short side of gold. That’s because gold and related stocks are technically overbought. In fact, if you pull up a two-year chart of gold, you can see it’s technically overbought on RSI, MACD, and Williams’ %R.
Even oil and related stocks have become incredibly overbought.
Look at crude for example.
After soaring from about $65 to $90.21, it’s technically overbought on RSI, MACD, and Williams’ %R. Or, look at Chevron (CVX), for example.
While it could see immediate-term upside on Russia, it’s overbought. Not only is it over-extended on RSI, it’s deep in overbought territory on MACD and Williams’ %R. We also have to consider that once the situation begins to cool off, which it eventually will, oil and related stocks will pull back, too.
It never hurts to hedge when prices are up this high, this fast.
The Dow is down about 90 points to 33,917
The S&P 500 is down about nine points to 4,335
The NASDAQ is down 82 points to 13,914.25
Gold prices are up 70 cents to $1,900.89
Bitcoin is up slightly to $37,471.59
Oil prices are up $2.64 to $93.71
The VIX is up about 1.26 points to $29.37
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