Floyd Upperman's Blog

May 19, 2010


Filed under: Uncategorized — floydupperman @ 6:58 pm

Gold appears to be breaking down in here today. If short, that appears to have been an excellent early entry. If not short, then i would recommend waiting for 2 closes under the 18dma and then look to short on the bounce back to the 18dma, using an initial stop of 1250 on an intra-day basis, not close. Ounce short in fact I recommend switching to intra-day data (i.e. 5 min charts) for your trailing stop. You can also consider selling naked out of the money calls in here, of course this is just as risky as selling short the futures but if the market stalls or moves lower the only value the out of the money calls have is time. The time erosion factor chips away at the value as the clock ticks toward expiration (at which time all out of the money options become worthless).


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