Posted Friday, January 27, 2012 @ 8:04 am by Dr. Wish
21st day of QQQ short term up-trend; GLD breaks down-trend
The up-trend in the QQQ continues. I have written about the probable down-trend in gold, as measured by its ETF, GLD. However, you can see from this daily chart that GLD broke its down-trend on Wednesday on above average volume. Since I already own an in-the-money put option on GLD, I have purchased 100 shares of GLD, which are now protected by my put option. When I buy an in-the-money put option, and the stock reverses, I can always just buy the shares and keep the put option as insurance against a resumption of the down-trend. If the stock resumes its down-trend I can just sell the shares and retain the put option. Click on this daily chart of GLD to enlarge.
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