Tuesday, November 8, 2011

New Trade - GLL

Click on Chart to Enlarge

Buy GLL tomorrow with a GTC sell stop @ 14.25. Current price is 15.56, so that could be used to calculate position size.

GLL is a 2X inverse gold ETF. Gold is right in the target area for a 1st reaction rally high after a bull market high. This is typically the best time to short a market. The time frame for a high may still allow several days or more, but there is bearish divergence on the hourly chart and the daily stochastics is overbought, so I don't feel compelled to wait any longer.

I also am buying Jan 2012 52 puts on GDX at the open tomorrow. GDX is the gold miners ETF.

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