Trade the Cycles

Wednesday, December 21, 2005

......................I Got My Shorts On

I finally bought some XAU Puts for a short term trade. I had a limit order in modestly below the market and waited about 15 minutes before it got filled. I correctly expected enough strength early today to fill the order. SPX was a great lead indicator that gave me confidence to use a below market order and risk missing this buying opportunity. I was confident that SPX strength would lead to index fund buying of gold/silver stocks and that's exactly what happened.

1 Comments:

  • Alice,

    The XAU fell nearly 5% in less than two sessions, from it's short term cycle high early on 12-19 to it's very short term cycle low late yesterday. Not such a slow start.

    Thanks for the kind words and Happy Holidays. Ciao

    By Blogger Joe Ferrazzano, at 10:12 AM  

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