We are short a single contract with a cost basis of 1176 and a theoretical gain of $10,900. Bring the stop-loss, currently at 1111.40, down to 1093.70. At current prices, the position is showing a theoretical gain of $10,900. If and when this relentless downtrend closely approaches our original target at 1044.50, we’ll look to hedge the short by buying ten just-out-of-the-money call options in GLD for each futures contract that you are short. In theory, our premium risk should amount to no more than 10% of the $13000 we will have made on the short-futures position. If you’ve held no position, you can still bottom-fish 1044.50 using GLD calls, since a tradable bounce from that price is very likely, in my estimation. _______ UPDATE (5:28 p.m.): No change. The fleeting head-fake on the non-news from the Fed was not especially encouraging.
