Taking Profits in Gold Long Position

By: Mike_Paulenoff

I am looking to exit part of my long position (model portfolio) in the streetTRACKS Gold Shares (NYSE: GLD) at 70.80 today for three reasons:

1. The GLD is up 8.5% since its 8/10 pivot low at 65.15, which if nothing else in a normal market would appear to be a bit overdone,
2. The pattern carved out within the upleg off of the 8/10 low into today's high argues for a rest-digestion period; and
3. I want to take a profit (after all, what are we trying to do here?). If my near-term work prove accurate, then I will be looking to re-enter the second part of the position under 69 in the upcoming hours/days.

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By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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