Each Thursday in Superstock Investor we review charts of the S&P 500, NASDAQ Composite, Russell 2000, 20 Year Treasury, U.S. Dollar, Emerging Markets, Corporate Bonds, High Yield Bonds and Gold.
Without a doubt the worst looking chart is Gold via the SPDR Gold Shares ETF (GLD) that is in free fall mode. We have been patiently waiting for the Rate of Changed Adjusted To A 50 day Moving Average to turn up. It has not.
When and if it turns up Gold could have a nice run and we will be long in Gold & Energy Options Trader. So far this year, we have established two put positions in GLD that have returned 38% and 28%.
Given that we caught the downturn early, we thought that we would be able to play the long side. Unfortunately, Gold continue to struggle. So instead we have been playing Crude Oil via the United States Oil Trust (USO) with two call and one put trade.
We feel that next week could mark the turn in gold so check back for comments on how we played the turn or sign up for a trial to Gold & Energy Options Trader for $49 for the next two months and see if options trading is for you.