SPDR Gold Shares (GLD:NYSE) and Silver Trust (SLV:NYSE)
Most of us have noticed, that gold and silver etf have both made parabolic moves this year, silver especially. Now there are still smart people on both sides on the Gold and Silver trade. The action seen by both longs and shorts in the precious metals impacts almost every investment vehicle. All the way down from Interest rate swaps to rising Silver penny stocks.
What I am going to cover in today’s entry are some simple exit points and on the SPDR Gold Shares (GLD:NYSE) and the IShares Silver Trust (SLV:NYSE). As mentioned above, these ETF’s have moved in a parabolic fashion and many shorts have been steamrolled in the process. Remember the old saying that “The market can stay irrational longer than you can stay solvent”. This upward move has made owning large cap names like Silver Wheaton (SLW:NYSE) and Newmont Mining (NEM:NYSE) very fashionable. It has also turned some small Silver and Gold mining penny stocks into massive short term winners.
Now here is something to watch for, it’s called a “Psych Level”. The Silver ETF for instance is coming close to the psyche number of $50. There are many traders who buy into this theory and it sometimes becomes a self full filling prophecy. In addition to this psyche number, some experts feel that many shorts have buy stop orders slightly above the $50 range, and that could also cause panic buying.
Shares of the GLD are somewhat less volatile. Like Silver, Gold has set multiple new highs recently, and a test of the upcoming $150 “Psyche Number” is very possible. Traders often can take trading vehicles higher, just because they can. Think about it, does the industrial uses of Gold of Silver merit these prices ? Probably not. But, just like a small cap internet stocks or a rising hot penny stock, supply and demand simply can take over.
So watch the $50 level on (SLV:NYSE) and the $150 level on (GLD:NYSE). While it’s possible that neither gold or silver ETF will reach these levels, these numbers are certainly in play. So be aware.
Stay tuned for more penny stock alerts, market updates and IPO news.
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Its a great information about gold etf funds. i was very pleased to read this article. read more information about gold etf from gold etf and have a clear idea about it.