SPDR Gold Shares (NYSE: GLD) — This exchange-traded fund (ETF) had a terrific run from $80 a year ago to the recent top at over $138.
On Jan. 27, the Trade of the Day said, “Yesterday’s reversal could produce a buying opportunity for traders of call options, and could also give current holders a good exit point for those who wish to take a profit. That bounce from the neckline of the chart could easily run the stock to the top of the open gap at $133.40, and perhaps even to the 20-day moving average at over $134.”
That buying spree turned out just as anticipated. But with new pressures to load up on gold coming from both the near and Far East, it is possible that gold will again break to new highs.
Maintain current positions in GLD. If this gold ETF breaks above the recent high at just above $139, it could quickly pop to $150, our short-term target.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
