You're Yellow, See

I see Goldman Sachs is out with a call to short gold here. As always, the yellow metal remains a controversial topic in trading and investing community. 

With plenty of major gold miners reporting earnings this week, I am inclined to wait until after their various price reactions before reentering the complex--We sold a SLW long on Friday to lock in gains over the long weekend. 

On the GDX ETF daily chart, below, for the senior miners, they could easily come back down to $17 and still be just fine, in terms of retaining the lion's share of their recent gains. A move down to $15 would be painful to longs, but still is colorable within the context of a major bottom. Below $15, and the whole rally is suspect. 

But, for now, it is worth noting that GLD, ETF for the yellow metal itself, now has a rising 200-day moving average. If the rest of the complex follows suit, Goldman's call may provide more fodder to those who believe it was yet another attempt to lure "muppets" into a vicious trap--They're yellow, ya see.