Tuesday, December 4, 2012

With Gold at the Bottom of the 11-Year-$1500-Gain Trendline-Channel Is it Time to Look at Triple Levered Inverse ETN's? (DGLD; UGLD)

NO.

From Kimble Charting Solutions:

CLICK ON CHART TO ENLARGE
In 2001, Gold was trading below $300 per ounce. Since then, Gold's strong rally has stayed inside of rising channel (1) the majority of the time (see chart above)....MORE
DGLD is the  VelocityShares 3x Inverse Gold ETN. It's not for you.

Better you should find yourself a nice triple-levered long gold ETN, sell them both as a pairs trade and pocket the time decay that the derivatives inside these beasties will kick off.
Give up those dreams of leveraged triumph and join the Thetans.