- $150 initial profit target - Two closes below $136 is exit signal (this would be around a 50-60% stop)
Rationale:
- GLD has broken out of the descending channel (period of consolidation) - Bullishly stacked moving averages - GLD can also act as a potenital hedge against other market long positions (MJ for example) should we experience a market pullback in Q1 - Bullish MACD cross and moving averages cross - Longer dated options give more flexibility in allowing the trade to develop, also gives us the ability to roll the contract to lock in profit and stay in the trade - GLD has had quite a nice move up recently and is at the 3 ATR on the daily, so a slight easing is possible, but any ease should not take us below our stop, if this breakout has any legs
- Trading Edge
Trade closed manually
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Exit position: Due to weakening technicals (MACD, RSI, and others)