Eric Bolling has long been bullish on gold. But lately it’s been trending lower even though the dollar is weakening, other metals are strengthening and oil – which typically runs closely with gold – is on a tear.
It’s a case of good news but bad action, Eric says. He’s not changing his position on gold, but after studying the two-and-a-half-year chart for the streetTRACKS Gold Shares (GLD) ETF, he thinks you should be ready to sell the minute the commodity goes $20 lower. You can still buy it here, and definitely buy it higher, but “don’t own an ounce of gold” if the price drops $20, he says.
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Trader disclosure: On June 25 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Najarian Owns (.VIX), (TIF) Bolling Owns (SZE), (VE), Gold; Bolling Is Short (FXI) And Owns (FXI) Puts; Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures; CNBC Is A Service Of NBC Universal And Dow Jones; GE Is The Parent Company Of CNBC