GLD, the popular gold ETF, has gone parabolic already. This reminds of the parabolic rise in SLV before its collapse back in May of this year. Parabolic markets often indicate panic buying from retail traders and uninformed investors who are convinced by the media that the current trend will last for a long time and they can profit even though they enter the market late.
It is clear from the daily chart of GLD above that a parabolic move started last month. I do not think anyone can tell for how long it will continue, as in the case of SLV. However, history has taught us that these parabolic moves are erased in a matter of a few days. This type of violent correction will happen in GLD but it is very difficult to pinpoint in advance the timing.
Have a good trading day!
Disclosure: no relevant positions at the time of this post.
Disclaimer: The author is not a financial advisor and does not recommend the purchase of any security or advise on the suitability of any trade or investment in any timeframe. ETF, stock, futures, forex and options trading and investing involves substantial financial risks and can result in total loss of capital. If investment or other professional advice is required, a licensed professional should be consulted.