At this exact moment? Yes. Am I a fan longer-term? No. Gold ($GOLD) nearly always is a good choice during periods of anxiety and we sure have plenty of that right now. So owning a piece of it would make sense for anyone wanting a hedge against the stock market or simply trying to outperform that benchmark index while equity prices are falling. Take a look at this chart:
There's a lot going on here, but note the relative strength of gold vs. the S&P 500 ($GOLD:$SPX). The blue directional lines show that gold is a great relative performer after the 5 day SMA of the Volatility Index ($VIX) climbs above 15. That's a very simplistic explanation of one part of this chart, but it will be featured as part of my Talking Technically segment this morning on Trading Places LIVE at EarningsBeats.com.
My show starts at 9:00am EST and Talking Technically will begin at roughly 9:05am EST or so. If you'd like to listen to a deeper conversation on this subject, please join me! You can access the show live by following this link:
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Happy trading!
Tom
