Yes, it is true. I have been trading the currency markets recently so the equity and commodity markets are going a little bit in slow motion for me now. Either way, the bottom line is that I have been pounding the table about buying gold for the last $150. THERE IS STILL TIME! You need to get in soon or the trade becomes very risky. I told you about the call option trade on the GLD. You got your original investment out so the capital is safe. You are now at a 265% gain. The best part about it is that there is still a TON of room to go with this trade. Easy money.
Here is another one. The trade is a little mature but I think there is still another 30-50% in the ETF. This means about another 500-1000% in this trade depending on the speed of the move. Buying the $60 Sep Calls on the (TBT) ETF. This gets you a double short on long term Treasuries. We currently have a bubble in cash and cash equivalent securities. People are so afraid of "risk" based assets like stocks and bonds now that they are putting cash in Treasuries until the proverbial coast is clear. Of course, they will flow out when it is too late and the stock market has run up considerably. That is the time to sell your shares of TBT or the options. Take your money and run with this one.
Until next time, stay low risk..
Friday, January 30, 2009
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