Saturday, April 25, 2015

Shits n'Giggles: GLD (DUST, DGLD, JDST), EPV, ERY and ERX

What follows are a couple of interesting opportunities that have presented themselves recently. I want to know what other people think of them but I wouldn't be posting them if I didn't think you could make money from them.

Giggles: Gold (GLD) Short (DGLD, JDST, DUST)
About a week ago I speculated about a possible head-and-shoulders pattern in GLD developing. The call was made at the last red arrow, about the 13th of this month. It seemed risky because the internet is generally alight with the talk of gold finally being in a bottom and naturally that made me start looking at alternatives. This week saw a 2% decline for the precious metal with a rest forecast to take place around $112.00. Other precious metals like silver and platinum have followed along with all their miners (DUST, JDST).

The really frightening thing is if this head-and-shoulders is actually true and the pattern continues to play out. Generally (and I mean this in the broadest sense of the word) a decline follows the pattern equal to 133% of the distance from the base to the top of the 'head.' On GLD this equal to $15.00 so a decline in the coming weeks may see it fall to around $92.00. Please take advantage with DGLD, JDST and DGLD ETF's.

Shits: Natural Gas (UNG)
UNG is hanging on by a thread above $12.50 after giving up on a previous support line I had marked. My KST indicator has still bullishly crossed over and we continue to inch our way towards the final resistance line of the large downward channel. It may be the beginning of May before we see this resolve itself but if in that time it remains above $12.50 that will be quite bullish. My 'long/buy' call was a little premature.

Giggles: Euro Index Fund (VGK, EURL) Short (EPV)
I was looking at EURL recently which is a long Euro Index fund that has been a successful favorite of Barrier Cove lately and I noticed a bearish pennant developing. VGK is a more liquid unleveraged Euro Index fund and it showed the same thing. Traders can take advantage with EPV.

Shits n'Giggles: Energy Fund Bull (ERX) and Bear (ERY)
Matched funds are always fun because they make a very convenient arbitration trade. Right now I'm looking at a "long/buy" on ERY and "short/sell" on ERX. I noticed recently that ERY was coming up the lowermost support line for it's current downward channel but that horizontal support going back to late November and earlier was also in play. This is a highly speculative play but ERX has just had it's third hit on it's current ascending channel and indicators are pointing to an stock that needs a bit of a break. The sell for ERY is set at around $20.00.

Jakob Richardson © 2015