GLD another high for Gold

SPDR Gold Trust, GLD. Oct 13th, 2010 at 08:15am PST

Here is a chart of the most popular Gold ETF, GLD. It reached a new high this morning at 134.31and there is still quite a few hours to go in the trading day. This ETF price is about 1/10 the spot price of Gold and has the highest daily volume of any Gold tracking ETF.

Stohcastics are embedded and this rally seems to be extremely strong going into October which is typically a loosing month for Gold based on seasonal data. Some may speculate that new shorts that have come into the market over the last week or so are expecting a pullback after a 50+ trading day rally. (Trading days in August, September and the first week and a half of Oct) All professional traders place stops above their shorts to cover as soon as possible to loose the least amount of money when they are wrong. When the stops are triggered and they buy back, it sends the stock/ETF/commodity higher which may be the case here. (Short squeeze)  You can probably bet that after this new high was achieved this morning, new shorts were placed on.

Is a pull back inevitable? Can this rally be sustained by a dropping US Dollar?

'Markets can stay irrational longer than you can remain solvent' - John Maynard Keynes.