Trade Alert – (GLD) April 18, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

Trade Alert – (GLD)

Double your existing position

Buy the SPDR Gold Trust Shares ETF (GLD) June $160 Puts at $4.60 or best

Opening Trade


expiration date: 6-15-2012

Portfolio weighting: increase from 5% to 10%

($5,000/100/$4.60) = 11 Contracts

Gold continues to fall out of favor as the melt down continues on the charts.

I now hear rumors that the European Central Bank may have to sell some gold to fund the impending bailout of Spain and Portugal.

On top of that, the end of the Indian jewelers strike over a doubling of import duties for the yellow metal did not generate an iota of new buying. And remember “Sell in May and Go Away? It is 12 days away. Last year at this time it fell a very rapid 16%.

Even on big “RISK ON” days gold won’t rally. As hedge funds liquidate, $1,500 an ounce is coming into view, which would be a home run for these puts.

So I am doubling my holding in the SPDR Gold Trust Shares ETF (GLD) June $160 Puts, taking my total portfolio weighting from 5% to 10%.

ETF Alternatives:

Buy the DB Gold Short ETN (DGZ) 1X short gold
Buy the DB Double Short Gold ETN (DZZ) 2X short gold
Sell short the SPDR Gold Trust Shares ETF (GLD) on Margin outright

or pull out the gold inlays in your teeth, sell them, and replace them with silver amalgam. Any pawn shop will tell you that people do this.

If QE3 is truly off the table and we are back into “RISK OFF” mode, there is no way gold can hold up here while everything else is collapsing. We are already in a clear downtrend on the charts, so we might be able to take some quick change here.