Golden Opportunities

Over the past few years gold has for some reason treated us very well. While the gold bugs have been embracing the pain we’ve chased this thing up and down the hill like an old donkey. I really enjoy trading it – it’s fairly predictable for the simple reason that a lot of emotions are tied to it. People believe and for some reason have a passion for gold – for us it’s just an expensive metal that we buy and then sell to the next sucker.

As so often when participating in the markets the name of the game has been one of patience. Gold has a tendency to run like a hare and then come to a full stop, making everyone guess what may come next. The 25-day SMA has been a good friend to us and this time around was no exception as gold was tinkering with it for a few days as we were waiting for an opportunity to get positioned (preferably to the proper side of course). That opportunity was bestowed to us by an inside day breach last Friday. And we are off to the races. I would hold here through any pull backs as I don’t see anything on the horizon right now that would compel me to cash out. Taking a few contracts off the table after such a long candle is of course permissible. But don’t cut your winners short – when they run, let them!

Natgas was another one that painted an inside day candle on Friday and I hope you caught the bus to the downside. If you have take profits now as I don’t trust natgas further than I can – well, you can’t really throw a gaseous commodity. You can expel it but that’s not a recommended way to make friends.

AAPL – is actually looking a lot like gold last week and may I suggest that it often acts in a similar fashion (once again emotions are tied to the once so shining star of the Nasdaq – thanks for nothing Tim S. M. Cock). Anyway, perfect inside day entry here tomorrow. I would take this baby in either direction:

A few more goodies for my intrepid subs. Little appetizer: I am actually seeing a good setup on the equities side today but it’s probably not happening where you expect it.

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Cheers,