Add More GLD

Gold Exposure Looks Strong

By Bryan Bottarelli
Thursday, September 25, 2008 11:06 AM EDT
Thu, 25 Sep 2008 15:06:00 GMT

PLAY: Buy more GLD October 87 Calls (GLD JI) at or under $3.40, good for the day. Maintain your pre-determined sniper sell at $7.00. Lower your protective stop limit to $1.90.

Dear Bottarelli Research Member,

Politically speaking, no matter what happens over the next few days, it’s quite clear to me that the world markets will soon be flooded with U.S. dollars. As a result, I remain very bullish on owning positions that have upside exposure to the metals markets, especially gold.

Because of this viewpoint, I recommended the GLD October 87 Calls (GLD JI) on September 22nd for $4.90. And after a slight upside move, GLD has drifted lower in recent trading. As I write, these calls are now trading for $3.40. Some members have mentioned that they executed their stop loss order at $3.10. But I must tell you: I remain very bullish on upside gold positions. Therefore, I want to do everything in our power to maintain this position going forward.

GLD

Chart-wise, the GLD is approaching a support level at the 50-day moving average. And as you can see, GLD does have the ability to make huge upside moves (noted by the major upside candlestick formations that occurred four days ago). So, if you closed out this position, then I think it’s a good idea to re-establish it now. And if you’re still holding, let’s go ahead and add to it at current levels. Here’s the play:

PLAY: Buy more GLD October 87 Calls (GLD JI) at or under $3.40, good for the day. Maintain your pre-determined sniper sell at $7.00. Lower your protective stop limit to $1.90.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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