Tuesday, February 20, 2007

Gold and Oil

Today oil and gold were both down. March crude oil was down a little over a dollar and April Gold was down $11.80.

About 10 days ago I scaled out of a third of my long gold position because of the sharp move up into resistance which turned out to be the high of this recent move up in gold. Now it looks like we are getting a pullback so I'm looking to put that third back on. I'm watching 64 to 64.50 as potential support for GLD. 64 is also the .382% retracement.

Oil (USO) I'm going to raise my trailing stop for the majority of my position to lock in a profit. My stop is below the 47.30 low for about 70% of my position. I might be playing my stop too close to the market but I'm not going to let a profitable trade turn into a break even trade so I'm going to play a little defense here and lock in a gain on 70% of my position. I have no problem getting back in if I were to get stopped out. If USO can get back up over the 50 level, I consider that to be very bullish because we'll have a large 1-2-3 bottom at a time of seasonal strength. Let's see which way the market goes from here.

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