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Christopher Wallace
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Managing Director - CCC Investment Banking

  • Gold Has Reached Bottom Of Short Term Channel 2 comments
    Sep 7, 2013 7:08 PM | about stocks: GLD, GDX

    While I believe that the bottom that gold made when it momentarily broke under $1200 at the end of June was a significant bottom, I recognize that trading opportunities will arise as it generally works its way higher over the short term. I wrote a technical piece about gold having reached the top of a short term channel on Invested Central in late August. I like to trade gold through the gold etf (NYSEARCA:GLD).

    Since that time gold has dropped from roughly $1425 to $1360, a pullback of roughly 5%. GLD has returned to the bottom of its upward sloping channel:

    (click to enlarge)

    Based upon this chart, I liquidated my short term trading position in GLD late in August, as well as call options that I held in the gold miners etf (NYSEARCA:GDX). I believe the correction has now run its course. On Monday (9/09/13) I intend to re-establish a short term trading position in GLD via in-the-money calls with an October expiry.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GLD over the next 72 hours.

    Stocks: GLD, GDX
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Comments (2)
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  • Harry Piels
    , contributor
    Comments (163) | Send Message
    If NUGT or DUST are up two or three days in a row, I initiate a position in the other security. This can be played in a number of ways. Often, I hold both at the same time and market volatility can enable profits on both sides of the trade.It's a roll of the dice, but everyone needs some excitement now and then .
    11 Sep 2013, 08:00 PM Reply Like
  • Christopher Wallace
    , contributor
    Comments (1323) | Send Message
    Author’s reply » Both NUGT and DUST can certainly generate excitement - NUGT has dropped from just over 100 to the low 60s today. Pretty shocking for two weeks work!
    11 Sep 2013, 09:13 PM Reply Like
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