gold

    Posted by biscuit on 29th of Dec 2011 at 02:13 pm

    gold looks like it's putting in a bottom and the bond looks like a top. am i insane?

    No I was just looking

    Posted by tom on 29th of Dec 2011 at 02:19 pm

    No I was just looking at the GLD and saying it feels somewhat done to the downside BUT then I found something that I had not seen before and apologize if someone else noted it but there is a juicy gap at $144.93 from 7/1/11 that has never been filled so maybe we ultimately target there on this move.

    gap in GLD

    Posted by bpandya25 on 29th of Dec 2011 at 03:50 pm

    Looking at the chart of $GOLD itself instead of GLD, however, there is no gap. I would be surprised if we go much below 1500 in gold, and we may already be in a bottoming process.  Also that gap you mention is only 4 % more down. 

    I think this is a great buying opportunity now.  Good risk/reward situation.

     

    remember you don't have to

    Posted by matt on 29th of Dec 2011 at 04:32 pm

    remember you don't have to pick the exact bottoms, you can scale in parts i.e. buy 1/3, then buy another 1/3 if it goes lower but still technically OK etc, buy another 1/3 after a confirmed bottom

    You could also consider selling

    Posted by matt on 29th of Dec 2011 at 04:41 pm

    You could also consider selling some GLD puts, I sold some 144's today for a 1.3. If you don't mind buying GLD at lower prices anyway, why not get paid for it. You can get some nice premiums for Jan, you can still get a buck for the 145's, however this morning they were trading for 1.5. If you go all the way out to March, you can even get a buck for the 130. Or get $2.5 for the 140.

    here's a table of some of the Jan and Mar puts

    congrats to anyone who sold

    Posted by matt on 3rd of Jan 2012 at 12:09 pm

    congrats to anyone who sold GLD puts last week, most of these you can cover for 50 - 70% lower prices now

    We're all insane for doing

    Posted by kc on 29th of Dec 2011 at 02:18 pm

    We're all insane for doing this, but you might be right.

    Next week, we'll see.

    Too much media talk about $1265.

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