Hey There Income Hunters,
I want to send out a special thanks to everyone that joined the Digital Currency Arms Race Live event yesterday.
The stocks we discussed had a big day yesterday. Those were …
- Boss Energy (Ticker: BQSSF) +10%
- Denison Mines (Ticker: DNN) +6.8%
- Sandstorm Gold (Ticker: SAND) +4.5%
- The VanEck Vectors Gold Miners (Ticker: GDX) +2.5%
But somehow so did iShares 20 Plus Year Treasury Bond ETF (Ticker: TLT) …
A consumer price index (CPI) print of 5% — the most since 2008 — yesterday should have sent shivers through the spines of bond traders …
But you wouldn’t know that looking at the TLT chart:
Happy days when stocks, bonds, commodities and precious metals all rally…
The bond trade was very crowded, and sometimes that is enough.
I think the most interesting news to come will be how much gold China actually owns — because the biggest trade of the decade will be gold backing digital currencies … and it is coming.
Going for GLD
Now I’m looking at an option spread trade on SPDR Gold Trust (Ticker: GLD) to also consider for July.
GLD looks strong. During this rally it has held against the 20-day moving average with just one pullback.
Then yesterday it had a really nice high volume day up.
I think it is setting up for a nice breakout. This is a great setup for a call spread just above the recent high into July…
A 180-185 call spread offers a nice 4.5-to-1 risk/reward ratio and only costs $1.1.
We expect the market to rally into the June 28 deadline for paper gold trading desks to unwind their positions which is currently a net short of $40 billion.
That could easily push GLD above the 185 level with it set-up so bullishly …
Bring It Home
Just wanted to throw out one more bonus trade for the #Income Hunter crowd… I think we are in for one one heck of a ride in the next few weeks.
Enjoy it and have a great today…
Live and Trade With Passion My Friends,