All That Glitters

Let's give gold another shot. Gold is below both it's 120-day and 200-day moving averages so it's technically in bear mode, but I'm willing to take a shot that it's exhausted it's downside momentum for the time being. Just like last time, I'm going to use the same triple-leveraged ETF(DGP) with a tight stop. For now I'm going to use a 5% soft trailing stop. I bought this morning at $50.86/share. If DGP breaks it's 5% trailing stop(about $48), I will take another look at the technical picture and decide whether to give it some more room or not. Regardless of what happens with that, I will keep a hard 10% trailing stop and sell if it hits that. On the upside I'm looking for gold to at least go up to $1,750. That's about 10% on the upside which would be approximately 30% gain since I'm using the 3x leveraged ETF.

• Buy: 50 shares of DGP @ $50.86

The Numbers

• Cash: -$2,543
• Long Stock: +$2,543
• Available Margin: -$1,500