Below excerpt from a.m. edition of Sight Beyond Sight, is courtesy of global macro think tank, Rareview Macro LLC
New Strategy – Short Gold vs. Long Silver
This morning we sold 3000 GLD 12/20/14 P112 at .63 to close.
We rotated our short Gold bias using put options into a short Gold versus long Silver spread using futures.
The updates were sent in real-time via Twitter.
Below are two illustrations: A “monthly” chart of long Gold versus Silver and a matrix containing our trade construction details.
Note that this is not a short-term “tactical” trade but rather an intermediate term “strategic” trade. As such, it will be managed with greater latitude in terms of risk.
Similar to the 200-day Moving Average (200-DMAVG), we find long-term Linear Regression Channels can be a strong technical indicator.
For those not familiar with Linear Regression Lines, it is a line that best fits all the data points of interest and consists of three parts: more