June 13, 2006
Tomorrow's Gameplan - TONIGHT
I like the daily recaps that I get at TraderMike's site
Problem is I am long Gold and got longer today. I don't really trade off moving averages much, mainly because I do not trade much anymore, but it looks like Gold is still OK technically. Big Woop. A lot of good that will do me if we gap down again tomorrow.
Here is the Gameplan for tomorrow:
1. Call mom (again) ask for help with my margin call :)
2. Mom won't answer as she is glued to CNBC and panicked so I leave another nasty message.
3. Lie to my clearng firm in the morning and say money must be lost in transit.
OK, not my gameplan, but one that is pretty close to many others out there and why we are getting the nasty closes.
So, what happens tomorrow - no idea.
My gameplan is to continue to scale into gold stocks and calls here for up to 10 percent of my portfolio for this trade. I am at about 5 percent now. That would be a big position for me and I would unwind half quickly into a rally above $600.
I don't see how Gold continues to collapse quite so fast. At this rate, Russia will be at zero in ten days, India, 40 days and Gold 10 days. Even I am not that unlucky :)
Because I saw most of this damage coming back in Mid May with the help of people in the blogroll, I had been pretty cautious until yesterday. Risk/Reward says that this trade is a winner 10 days out and I am sticking with my plan for now.
I hope an audible is not called for, but mine would be to cut and fight another day.
Long - lot's of Gold stocks and calls, TRF, IFN, and SPY PUTS and UPS PUTS.
Short - patience.