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Gold breaks out, Treasuries break down

|Includes: GLD, iShares 20+ Year Treasury Bond ETF (TLT)

 After banging its head around 1400 for the last 6 months, gold finally broke through with authority yesterday.  GLD is the most common way to gain exposure to the price of gold via paper.  Leveraged options include DGP (NYSE:ETN) and UGL (ETF).

One of my favorite ways to play this gold breakout is SNDXF (I am long).  It is micro-cap royalty play, run by a former CFO of SLW (Silver Wheaton), using the same business model.  SNDXF is paying around $400/oz on average for production.  SNDXF is blasting out of a two year ascending triangle.

 

As precious metals and the commodity space in general flashed green, the U.S. Treasury market dove deep into the red today.  TLT broke its trendline support, which was sufficient grounds for me to sell part of my holdings.  I expect to sell more/all tomorrow if there is not an immediate rebound above the trendline.