Gold is falling -- DGP -- deleted

This morning I placed a sell order in my Barchart Van Meerten New High portfolio for the
 Gold Double Long ETN (DGP) for very negative price trends.  One of the last things I do before I push the sell button is to run a 60 minute chart that shows the price against the 20, 50 and 100 hour moving average.   There is nothing worse then selling a stock because all the technical indicators are negative and not realizing that the stock is recovering from a temporary set back.  This last step doesn't prevent it in all situations but it helps.

You can see by the chart that it was time to cut this one loose.  The technical indicators I used to identify the potential sell were:

• 100% Barchart short term technical sell signal
• Trend Spotter (tm) sell signal
• Trading below its 20, 50 and 100 daily moving averages
• 10 new lows and a loss of 11.07% in the last month
• Relative Strength Index of 30.71% and falling
• Trading at 36.16 well below its 50 day moving average of 40.21.

Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.

Through Marketocracy Capital Management you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High portfolio.

More Gold

This morning I added PowerShares DB Gold Fund (DGP) to the Barchart Van Meerten New High portfolio purely for technical reasons. The ETF is based on the Deutsche Bank Liquid Commodity Index - Optimum Yield Gold Excess Return and managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold. Again this is purely for technical reasons. The points I considered are:

• 14 new highs in the last 20 trading sessions including 4 of the last 5
• Price appreciation of 11.41% in the last month
• 88% Barchart technical buy signal - 11 of the 13 indicators are a buy
• 14 day Relative Strength Index is 66.68% and rising

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication