Wednesday, September 10, 2014
The inverse Gold ETF DGLD is showing typical behaviour for volatile periods in inverse leveraged ETFs. What comes after a period like this is a move significantly lower. A short position will be highly profitable when that happens. The only problem is to know when we are ready for that move lower. There are several possible trendlines that could act as a ceiling. Many times the last peak in a chain of peaks do not bounce of a trendline but fails before that level.
I'm already about 30% invested in DGLD and DSLV shorts.