Let’s Look At GOLD YTD and SP500 in 2009

In 2009 Gold rallied to its peak of $1225 from its low of $814. This is about $36% profit. Recently, however, Gold has been on a downward trend almost every day in December to a retracement level at $1100, the 50 day exponential moving average. If buyers do not support this price level, then there would be further downward trend towards $1025 and critical $1000 levels. Gold will eventually start moving higher but the big question remains… how low will Gold go down before continuing its upward trend again? Be cautious not to re-enter Gold positions too early. Check out my previous post on Gold ETFs.

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Check out my prediction on GOLD back in December 2, 2009.

The S&P 500 has been on sideway trading since early November. It looks like S&P500 will not go beyond its 50% retracement level at $1120. Watch out for $1083 level. If S&P500 goes below this level, then everyone needs to get out of all LONG positions. I have a feeling S&P500 might just reach $1083 level soon in December. Check out some of the inverse ETFs that may do well as the market declines.
Feel free to leave a cooment on your predictions on Gold market and S&P500.

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Trading Stock Market said...

S&P 500 and DJI have been a month in sideway trading. Keep in mind that in 2004 the S&P 500 index was trading at this level most part of the year, the DJI moved at this level whole 2 years (2004 and 2005). We could be at level that reflect real value of the index companies.

TraderJoe said...

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Michelle said...

Yes, I'm glad that you mentioned about past history of the stock market. Our current situation is very different from year 2004 and 2005 because the SP500 and other index in 2009 reached 50% retracement level after that significant loss during early 2009. That's why we will not see a prolonged side way movement that occurred in 2004/2005. The market went up too much in a short period of time, thus it is time for the market to go through a significant correction.