Wednesday, December 8, 2010

Trade Update: GLD

I want to tighten up the stops on GLD. You can the undeniable double top that is forming at $149. It is resting on the 50 dma around $133. If it punches through $130 the double top will be confirmed, but the stochastics are poised so that it could fall quite a way from here. So, I see no reason to wait.

Currently stops are set at $132.50 and at $130.50. Move all stops up to $132.50. If we get stopped out, but the double top is not confirmed we will re-enter in blue sky territory above $140, otherwise we might catch a break on a rebound under $130.

Sell stop: Sell 100 shares GLD @ $132.50

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