Wednesday, April 22, 2009
Gold in 4th Wave, Patience a Must; April 22, 2009
Above is a mini gold 8hr futures chart that shows we're probably still in a 4th wave. Because of the wave count, the make or break point has now moved from $911 to $950. I never want to raise a stop loss and increase risk (my goal is always reduce risk whenever it increases the value of a position/trade). So I took some profits on this trade that started well above $900 and moved fully out of my bear GLD spread and added to my short ETF position on the GLD. I also bought an option "butterfly" to act as a mild hedge, especially if gold trades slightly higher or sideways which it might do if it's in a 4th wave as suggested.
So my new gold positions are an option butterfly and a straight up short on the ETF (GLD)