Editor's Note:
Good evening. I've released a new long play in GLD below which I think will do very well in the coming weeks. We have several short positions to take advantage of continued market weakness and I plan to release more short plays once the market retraces some the recent declines. I anticipate continued selling in the next day or two and I would be protecting profits against a hard reversal on short positions. We will be able to re-enter short positions at a better price. Please email me with any questions.


NEW DIRECTIONAL CALL PLAYS

SPDR Gold Trust - GLD - close 117.34 change -0.39 stop 112.50

Company Description:
SPDR Gold Trust (the Trust) is an investment trust. The Trust holds gold, and from time to time, issues SPDR Gold Shares (Shares) in Baskets, in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. A Basket equals a block of 100,000 Shares. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion.

Target(s): 121.60, 123.00, 125.00
Key Support/Resistance Areas: 123.00, 118.50, 116.50, 113.50
Time Frame: Several weeks

Why We Like It:
I'm not necessarily a longer term bull on gold, but if the Fed is going to monetize our country's debt gold is going to catch a bid, and I believe now is a perfect time to get in via GLD. Considering the events of the past few days gold and gold miners should catch a bid here and act as a defensive play. From a technical perspective GLD bounced perfectly off of its upward trend line from its lows on 8/17 to 2/5 to 7/28. And I think GLD will print new all time highs within the next several of weeks. I suggest readers enter long positions now. I've provided three realistic targets that will produce good winning trades if reached. Our stop is below the 200-day SMA at 112.50.

Suggested Position: Buy September $120.00 CALL, current ask is $1.43

Annotated Chart:

Entry on August xx
Earnings Date N/A (unconfirmed)
Average Daily Volume: 12.4 million
Listed on August 11, 2010