Trade Plan: Short Gold
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
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.
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).
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.
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.
Oh to answer your question – short DGP.
DZZ brings up memories of EEV, the wound is still fresh 🙂