Gold trendline

I decided to be a little schizophrenic and debate myself. In the post I did about Gold earlier, I felt, along with Adam, that Gold was going up from here...but what if my other self was right?!

Drew this hourly chart of Gold and I am pretty sure that this trendline will help determine if this new uptrend is for real or not. Fundamentally, other then the continual printing of money that we see (we had a crummy bond auction today,) I don't see anything that is inflationary.



First of all, the amounts of "printing" that countries are doing with their currencies are already established. Yes, New Zealand did surprise people the other day, but, for the most part, I thought quantitative easing was already built into the currency markets. Old news. Secondly, Bernanke came out today and reiterated what the Fed has been saying for a while now, they do not see inflation.

This is how you can incorporate fundamental with technical. What happens with this trendline (or any trendline, really) is a sort of poll of traders...what everybody else thinks.

P.S. This is why I have no problem keeping my puts until they expire...Gold's volatility is dangerous and if you are going to protect your portfolio with Gold, you better protect your Gold with puts.