Tuesday, May 11, 2010

GLD

Just as the Basket of Income stocks seem to perform better with a wider trend setting, so does GLD.  Below is the GLD Trend Model (7/4.0) using the wider volatility setting of 4.0, meaning fewer trades and longer trends:
GLD Daily Trend Model 4.0


The most recent trend change was from SHORT to LONG on April 5th @ 112.49.  GLD closed today at 120.65, for a gain of about 7%.  May at-the-money calls would have moved up about 200%.  As I just pointed out to my subscribers, both GLD and SLV provide excellent leverage in their underlying options....when you get the direction right.

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