Sunday, July 24, 2011

Trade Update: GLD

Where SLV is flirting with resistance GLD is poised for another breakout. You can see the reversal in early May from $152.37. Notice the the three white candles going up to $152.37 with rising buying volume, the big selling that took the shares down to $142.50. That is a perfect turn around. Now GLD is on the rise again and when it broke into new territory above $152.37, again we went long, opening a 1/2 position from $154.57 with a stop at $150.94. Now we have to consider a how to finish our position.

The problem with buying GLD comes down to where to place the stops. Right now we are long 1/2 a position with the stop at $150.94. Interestingly enough the 100 dma is moving up to intersect with $150. Once we fill out our position on GLD I don't want to be long under the 100 dma. So, I think the thing to do is get in with a stop at the 100 dma and then tighten the stops when a clear line in the sand is drawn.

Right now we are not buying anything, just wait for the alert.

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