The set-up: Gold had a really strong day yesterday, but it’s an FOMC meeting day today. Any time the Fed releases meeting minutes, gold and the miners go up. That’s what a lot of people will be expecting again.
This time is different because the Fed is raising rates today, and I believe very strongly that as soon as the decision is announced at 2 p.m., gold is going to reverse hard, and everything tied to gold is going with it, Whether the Fed raises a quarter or a half point, gold will be destroyed because the commentary for the rest of the year will be extremely hawkish; that’s bad news for gold, from the physical shares to the miners and everything in between. Anybody long in a trade for more than five seconds will be on the wrong side of things late this afternoon and tomorrow.
What I’m doing: I’ll be looking to get into DUST after the decision if I buy get in below $28.50. I’ll expect it to be over 30 by Monday, Tuesday at the latest.
Looks like Jeff Bishop sees otherwise…let the games begin! Here’s his plan!
Taylor Conway is the lead day trader at PennyPro.com. He is a short-term day trader of stocks and ETFs. At the time this article was published on RagingBull.com, he had no open positions, options or orders in DUST; he last bought it on June 5 and traded out on June 7 at a small profit. “Today’s trade” is a new regular feature from the pros at RagingBull.com discussing a move the expect to make in the coming trading day.