"Do you know the only thing that gives me pleasure? It is to see my dividends coming in." John D. Rockefeller

Trade Plan: Short Gold

6. January 2009• GoldPhantasmix Tags: , , , , ,  5 comments

Trade: either short DGP or long DZZ (favoring short DGP at the moment, this may change)

Trade is based on GLD levels –

Entry: break under $82.50 (bottom of the current sideways channel + bottom Bollinger Band)
First target: $78
Second target: $72.50
Stop: $84.15 (2% above $82.50)
Risk: $1.65
Potential profit: $4.50 (min)

Click charts to enlarge

gld2

gld

dzz

dgp

 


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5 comments:

  1. TSS, 6. January 2009, 8:54

    Excellent call. 2nd time over the 50 DMA was on lighter volume and again GLD failed. I have been burned so many times by that ETF I won’t trade it anymore, but I do like the set up.

     
  2. Phantasmix, 6. January 2009, 9:53

    TSS,
    I’m also watching the dollar – expect it to climb back up now that it’s corrected.

    Trying to ignore everything else and avoid with the noise (one of the resolutions).

     
  3. Leonard The Monkey, 6. January 2009, 20:51

    I hate gold. Did you choose your weapon?

    Love the mull wine recipe though! Thanks so much, worked out great!

    AZO brick wall at $140.

     
  4. Phantasmix, 6. January 2009, 22:06

    Hi Lenny,
    I love and hate gold (love the real stuff, hate paper).

    Usually avoid gold and oil, but this time decided to trade on what I saw. If I followed my opinions on oil, I’d be retiring now.

    Glad you liked mulled wine.

    I’m out of AZO but may buy March puts! Getting to know options.

    Happy New Year! :) Thanks for stopping by.

     
  5. Phantasmix, 6. January 2009, 22:08

    Oh to answer your question – short DGP.

    DZZ brings up memories of EEV, the wound is still fresh :)

     

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