I looked for a better setup than my previous ones.... I noticed that NUGT was in a downtrend on the daily chart above AND it had just completed a rally up and was sitting above the horizontal support line this morning, support from the gap up early this month. So trend down, MAs pointing down, threatening to go down through support, all positive signs for a short. When NUGT went through the support line middle of this morning I bought a position in DUST (effectively shorting NUGT). Even though the trade is going fine up till now I have no illusions, price of DUST might gap up or down tomorrow, and I'll hold or sell accordingly.
The other potential setup is GLD. On the daily chart you can see GLD is trending down, but the 50 MA is flat and the 20 MA is pointing up. My plan here is to wait for GLD to come down to the support line of the last minor low and if price goes below that I can short GLD. Price of GLD might still go up to the down sloping trend line first and then go down.
Really, I would love to go long, but the market is just spiking up right now, I don't see a good setup to go long.
Howard Milano
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