New Pairs Trade: $GDX/$GLD
- Posted by Robert Sinn
- on June 21st, 2011
I had been waiting for several weeks to enter into a long $GDX / short $GLD pairs trade. The ratio finally became oversold enough last week that I began scaling into the trade last Wednesday and added more on Thursday. Today’s bullish marubozu candle could be the beginning of a powerful reversion to the mean for this pair. A move above a ratio of .365 (GDX divided by GLD) would be very bullish for the pair and could lead to a quick move higher to the .39 area.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Robert Sinn is a professional trader and market analyst who focuses on multiple asset classes including equities, futures, options and currencies. He integrates fundamental and technical analysis. More »
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