Trade Alert : GLD

We are long 100 shares of GLD from about 89.00. I think we should hold these with no stops forever. I don't want to loose it all I just don't want to get stopped out of GLD at a time that the dollar is dead, the economy is moving into global recession and gold is at it's all time historic high ever! But as you can see on the weekly and daily charts the GLD trading in its new range above 93, but barely. The stochastics are over 80 and turning over on the daily. In the 15 minute time period there is a gap that formed between 89 and 91. If GLD falls below that gap it may drop a few more points and offer up a buying opportunity, but I'm not holding my breath.

The point is that instead of using stops on GLD we will sell short the IAU, beginning with 25 shares at 92.0 and adding another 1/4 position for each dollar that GLD falls. If GLD plummets through the gap at 89 we will profit from the short side and still be long GLD without having lost a cent since we went long the GLD at 88.93.