Hey Traders,

If we take a look at the historical chart of gold versus the Dow Jones from just before the Federal Reserve launched their quantitative easing (QE) program Gold has soared  …

Now, this is something not many investors have any idea about … But the fact is, when money supply is growing like it has in the US since the great financial crisis… The safest place to be has been Gold.

You Ain’t Seen Nothing Yet

Here is a little secret … Once the government starts printing money just to pay interest on their debt Gold really takes off …

Take a look at the chart below … The US has reached the point of no return and Gold ALWAYS figures it out first …

It is never an easy trade …  I myself got in at the very bottom of the trend from above .. I bought a December 175 call on GLD and sold an Oct 20 175 call at 168 …

I did not believe GLD was going to take off so soon … Sure enough it reached the 175 target like a bat out of hell and I was forced to unwind the trade …

I made some money but took myself out of an incredible win … But there will be many more opportunities for incredible wins trading gold …

You don’t want to chase …  You want to buy it when others are selling it and sell it when others are buying it.

I think we will get a pullback, most likely a test of the 200-day moving average .. It may even be as soon as next week … Here is why …

Oct20 OpEx will wipe out over $1 billion delta notional of positive gamma in GLD …

So, option dealers will have to sell their long GLD positions that hedge the short GLD calls that expire.

That may offer a great chance to get back in on the gold rush … Stay tuned for more on this next week and as always …

Live and Trade With Passion My Friends,

Griff