Our Stock of the Week is SPDR Gold Trust ETF (GLD). Typically we don’t choose an ETF for Stock of the Week, but with inflation surging and the likelihood of very ‘hot’ PPI and CPI numbers, and a good technical pattern, we believe this is a good time to consider this play on gold.
Gold has historically been viewed as an inflation hedge, but that view was shifted in recent years as it has been driven by currencies and other matters. In addition, there has been talk that cryptocurrencies were replacing gold as a ‘safe haven’ asset, but the price action there shows that view has lost traction.
Technically, GLD has had a period of consolidation since mid-March and is now breaking about resistance levels as inflation worries surge. We are looking to add to our position either on pullbacks or after some brief consolidation. As always, we would not chase the open on Monday but will look to aggressive trade the position as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in GLD To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.