Investor Alert

New York Markets Open in:

Market Sentiment (Stocks on NYSE, NASDAQ, AMEX)

Dec. 15, 2015, 12:36 p.m. EST

How to profit from the bear market in gold

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

About James Cordier

James Cordier is founder and head portfolio manager of OptionSellers.com, where he has managed assets for a global client base since 1999. He is regularly quoted by national financial media including the Wall Street Journal, Barrons, Forbes, CNN Money and Dow Jones Newswires. He is a regular guest analyst on CNBC, Bloomberg Television and Fox Business News. In 2014, James launched his 3rd edition of The Complete Guide To Option Selling, published by McGraw-Hill. For more information, visit OptionSellers.com.

/conga/trading-deck/bios/cordier_james.html 323442
The trading deck is powered by

By James Cordier

Continued from page 1
Page 1 Page 2

U.S. Dollar monthly chart is displaying a classic "cup and handle" formation.

Nor does the monthly chart.

The monthly U.S. dollar chart (above) seems to be reflecting a classic William O'Neil "cup and handle" formation. If Mr. O'Neil's forecasting model is correct, a substantial move higher in the dollar could be on the way.

Solid downtrend in gold

What is the end result of dollar strength and the global "risk off" vibe toward asset purchases? A stubborn downtrend in gold since 2012. And while limited rallies are to be expected, this overall trend seems likely to continue.

Weekly gold

Weekly chart shows gold entrenched in a stubborn downtrend since 2012. The economics of gold make this trend likely to continue.

Monthly gold charts look even more ominous for bulls. November saw prices break below major support set in June.

Monthly Gold

Gold prices have broken below major support on the monthly chart.


While gold will continue to have technical corrections, the there does not seem to be an impetus for a major trend change in gold in the immediate future.

We view any strength in gold prices this month as selling opportunities. While we recommend a call selling strategy to our clients, futures traders can look to short gold on limited December price strength. Look for a post-Fed announcement rally as an opportunity for shorts.

Page 1 Page 2
This Story has 0 Comments
Be the first to comment
More News In
Trading Deck

Story Conversation

Commenting FAQs »

Like & Follow The Trading Deck

/conga/commentary/columnist-competition/looking.html 234011

Partner Center

Link to MarketWatch's Slice.