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GOLD - Update On The DZZ Position

|Includes:DB Gold Double Short ETN (DZZ)

The initial commentary on my DZZ position (short Gold) can be seen here.

http://seekingalpha.com/instablog/706857-fear-greedtrader/2057612-

gold-what-to-do-now

Since then it has been a rocky ride as noted in my last update on 8/23

http://seekingalpha.com/instablog/706857-fear-greedtrader/2157782-gold-strong-dollar-dzz

In that commentary i stated --"DZZ currently stands at $5.85 , so I will continue to monitor with a "mental Stop " around $5.50.."

Well, the price of Gold rallied to $1418 and my corresponding short position in Gold Via DZZ traded down to an intraday low of 5.57.

I also continued to maintain that $1450 would represent resistance to the recent upward move in the metal. And that level did in fact 'hold" as the intraday high on 8/26 was $1,433.

Since that Peak of 1418 on 8/26 , the price of gold has dropped to the current price as I write this article-- $1370.

I continue to see more volatility in Gold over the next few weeks due to the hysteria surrounding Syria, etc. However , I do believe the rally has been turned back successfully and the metal will continue lower, albeit with spikes along the way do to the "manufactured fear" quotient from the goldbug crowd.

Looking at the chart pattern, the "Gold bulls' will have to defend the $1360 level here. If that level fails , I believe my initial forecast may come to fruition as the metal will head much lower and retest the $1,200 level.

Long term I still believe there is a very good possibility that 1,000 or over 30% lower from here, may be in the cards.

Disclosure: I am long DZZ.

Additional disclosure: I am Short gold via DZZ , Long numerous stock positions - full list is available on this blog Stocks4income@usa.com

Stocks: DZZ