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Xover
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  • GLD Ready To Rock 0 comments
    May 21, 2013 12:35 PM

    Long GLD Trade

    Let's take a look at the chart:

    (click to enlarge)

    GLD (top) and GLD Jun 130 Puts on a daily chart (source: Tradestation Securities)

    There are three main reasons why I am buying GLD:

    1. GLD forming a double bottom
      1. GLD Jun 130 puts indicate extreme panic
        1. I have a clear stop both in the stock and in the options with an attractive risk reward scenario

    GLD Trade

    Buy Long GLD ( 132.85)

    Stop 131.45 ( today's lows)

    Target 140 +

    Reward - 7.15

    Risk - 1.4

    Reward/Risk ratio - 5.1

    Disclosure: I am long GLD.

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