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GLD Ready To Rock

Long GLD Trade

Let's take a look at the chart:

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.