Posted by frtaylor on 18th of Dec 2010 at 08:40 pm
New 2x ETFs, one long and one short, were recently created for
GDX:
1. NUGT - 2x GDX long
2. DUST - 2x GDX short
http://tinyurl.com/2cxxe74
You could buy DUST and be shorting GDX itself, but at 2x rate.
So, buy that and set your stop at 16% (2x the 8% stop rule for
GDX). Of course, since it's 2x, you'd buy 1/2 as much as the amount
of GDX you would short if you could. These two ETFs were mentioned
about a week or more ago here on the blog.
Or, if you stick with DZZ, you can place a conditional sell
order in which you sell DZZ on the condition that GDX hits $65.23
(the GDX trade stop). If you're not sure how to do that, call
Schwab. Or, you could set two or three price trigger alerts for GDX
as it approaches its stop, then watch GDX on a chart and if it hits
$65.23, sell DZZ.
I can't say how you'd set a stop loss on DZZ directly, but it
would not be 4%.
Posted by frtaylor on 18th of Dec 2010 at 09:11 pm
You could play DUST for the GDX short and independently be
playing DZZ based on Matt's chart and analysis (it's a trade under
the Trade Ideas button). I am in fact doing this. The gold miners
do not track gold metal exactly. And really, with DUST now
available, there is no reason to use DZZ as the ersatz short for
GDX.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
use DUST or a conditional sell order
DZZ stop at what percent?
Posted by frtaylor on 18th of Dec 2010 at 08:40 pm
New 2x ETFs, one long and one short, were recently created for GDX:
1. NUGT - 2x GDX long
2. DUST - 2x GDX short
http://tinyurl.com/2cxxe74
You could buy DUST and be shorting GDX itself, but at 2x rate. So, buy that and set your stop at 16% (2x the 8% stop rule for GDX). Of course, since it's 2x, you'd buy 1/2 as much as the amount of GDX you would short if you could. These two ETFs were mentioned about a week or more ago here on the blog.
Or, if you stick with DZZ, you can place a conditional sell order in which you sell DZZ on the condition that GDX hits $65.23 (the GDX trade stop). If you're not sure how to do that, call Schwab. Or, you could set two or three price trigger alerts for GDX as it approaches its stop, then watch GDX on a chart and if it hits $65.23, sell DZZ.
I can't say how you'd set a stop loss on DZZ directly, but it would not be 4%.
DZZ is its own trade
Posted by frtaylor on 18th of Dec 2010 at 09:11 pm
You could play DUST for the GDX short and independently be playing DZZ based on Matt's chart and analysis (it's a trade under the Trade Ideas button). I am in fact doing this. The gold miners do not track gold metal exactly. And really, with DUST now available, there is no reason to use DZZ as the ersatz short for GDX.