Thanks for the protection recomendation, but I'll pass. I own mining stocks, GLD, and physical bullion. I have owned gold as an investment for many years. I stoped trying to hedge against gold in 1986. What I do now is try identifying overbought mining that I already own. When the convergence and divergence moving averages of the mining stocks show that a bearish crossover has occured I sell. I then wait two to five days and puchase bullion with the proceeds.
I would suggest that if you are of the opinion gold will sell off 4.9 percent. Short overbought mining stocks. The miners will fall a greater percentage. IMO
I have september 120 puts, If you own shares I would recommend these as protection. Who knows if the pattern will play out as it is too early to tell. I have a 20% sell to close order in if we get the down side I am waiting for I will be out.
I'm sorry, you are correct. A rising wedge is a bearish pattern. I confused the pattern with a Flag or Pennant patern. Flags and Pennants are short term continuation patterns and are bullish. A rising wedge is one of the most difficult chart patterns to accurately recognize and trade.
You told me you saw resistance on May 12. The high that day was $122.24. Once resistance is broken, another resistance level will have to be established at a higher level. On June 8th,18th, and 28th the resistance was broken. The reliability of this rising wedge formation has become questionable. IMO