Friday, August 5, 2011

Trade Update: GLD

No hate mail pleas but GLD is beginning to loo overextended here. You can see the sharp $18 run up from $145 to $163.87. That is quite a stretch without a pause and so when GLD sold off yesterday very late in the day I became worried about something that could portend more than profit taking, but a change in direction.

We entered GLD at $154.57 and again at $157.04, making our cost basis $155.814. I am moving all stops to $159.50. If GLD goes back up we get back in but right now $160 looks like the line in the sky.

Remember when the SLV went parabolic. We got out of SLV at $45 within pennies of it's high and we were able to buy those same shares back for under $40. I don't know what will happen today, but we cannot get hurt by selling at $160. So, move all stops to $159.50

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