12/18 The ShadowTraderPro Model Portfolio's long position in gold (GLD) was hit hard yesterday with higher volume selling pressure throughout the day. Price is now around the 61.8% Fibonacci level that was our original entry price. With our stop just below it at 106.00, it does not make a lot of sense for us to exit the trade now.

Trade Review: 12/10 advisory
12/10 Good morning, traders. Like the stock market of late, gold is also very much tied to the movement of the U.S. Dollar, but it has also been a very crowded trade recently. Yesterday the Gold ETF (GLD) touched the 50% Fibonacci Retracement level we discussed in a recent ShadowTraderPro Swing Trader, however we concluded during trading hours yesterday that it has a very good chance of coming all the way down to the 61.8% level so we deferred entering the ETF long. Today we are going to discuss exactly how we will play the gold trade. Please observe the split chart of the Gold Futures GC and the Gold ETF (GLD) below.
We plan to use GC (left chart) to trigger our long entry in GLD (right chart) because GC, like spot gold, GC trades around the clock as opposed to GLD which is an ETF and only trades during stock market hours.
We have drawn the Fibonacci Retracement study on both charts. We will be buyers of GLD if GC touches the 61.8% level today. A potential scenario that needs special attention is the chance that GC touches the 61.8% Fib level anytime between last night's stock market close and this mornings stock market open. If this occurs, the plan is then to buy GLD at the open with a stop under the low made by the first 15 minute GLD price bar.
For those that just want to play GLD based on it's price action alone, we have noted the entry price range (blue box) around the 61.8% level on the GLD chart and also listed it in the Bulls and Bears section below.





