Wednesday, July 2, 2008

Gold for $$$$

Hey everyone

I have recently entered into a call spread with GLD, the gold ETF. I purchased the Dec 92/94 call spread. My analysis on the ETF is fairly simple and are shared below. Remember to always do your own due diligence when investing/trading. I purchased it for $1.25 (includes commissions) and have a sell order in for $1.80 (before commissions).

- Dollar very low

- Oil very high

- ETF broke out of range to the upside

- It is volatile

- European Central Bank will probably raise interest rates to cmbat inflation unlike the US Fed Reserve

- War troubles

- G8 meeting creating worldwide focus on economic issues

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