General Stock Ideas

[gfp927z]

Gold broke the near term 1280 support level this week. Looking at the gold ETF chart (GLD), it had formed a fairly classic Head + Shoulders since January, with 121 as the neckline, and that support just failed.

The next support area for the GLD looks like the 118-119 area (which includes the 200 MA at 118.25, some areas from Dec 2017, July 2018, and the December 2018 breakout level). 118-119 for the GLD would correlate with 1250 for the gold price.

Fwiw, I'll probably be picking up some gold in the months ahead for my dad, who needs to rebalance his allocation model. Even with the recent selloff, the longer term gold chart has some positive characteristics (3 year ascending triangle, 5 year inverted quasi H+S).

More importantly, the macro developments say own some gold as disaster insurance (Rickards suggests 5%, but no more than 10%). For my dad, I'm figuring on 2.5% for now and then bulk it up to 5% over time. No sense having everything in paper (stock, bonds)..