By: Scott Redler
NEW YORK (TheStreet) — Scott Redler, chief strategic officer for T3Live.com, reveals how he’s buying gold for the third quarter and the one risk that could stomp on gold’s bull run.
Gold in my opinion is “not a bubble yet” It’s had a very methodical up move. It’s been trading perfect technically, trading by patterns. 2008 was the fear trade. 2009 was the inflation trade. 2010 is the fear of paper and the sovereign debt crisis. So each year we change “the reason” to own gold.
Commodities top with violence. Extreme moves, like we saw in oil two years back or the tech bubble have not occurred.
So as long as Gold continues to ride this uptrend we feel later this year we can have a blow off move higher to the 1400-1700 an ounce level. We have not seen the violence. We have not seen a up day of $50-100 dollar swing. That’s how big moves end. I’ve traded through a ton of bubbles and they don’t end in this manner.
I would put stops in at 1,230. I’ve been long since 2008 maneuvering my tier size based on the technical pattern.
