We addressed GLD in this past Weekend Update, but have been in gold since mid-June via NEM, added on June 13th via the Sep $60C. As of today, that Jun pick is up triple digits with still over a month to go until expiration: NEM Daily I've isolated the two most recent breakouts in this chart in order to present a clean example of how Wave 5 Buy Signals come in pairs, first upon the breakout of the descending parallel trend channel (May 23) and second, upon the breakout of the horizontal parallel trend channel (Jun 13). So long as the target allows for a generous return on intermediate term options, taking the second breakout, or even doubling up if already long via the first breakout, is a no-brainer. This is because initial breakouts can be false alarms, requiring a second entries, whereas the second breakout, the break above the horizontal trend channel, more often than not is the breakout that launches price toward the Wave 5 target zone. GLD Daily Case in point: The initial entry in GLD, via the Aug 1st breakout of the most recent descending parallel trend channel, has been slow going and call options modestly in the red, awaiting the next breakout above $318, the multi-month horizontal parallel trend channel. Consider doubling up on GLD calls upon that second breakout. The longer it takes to break above $318-$320, the more attractive the Oct expiration calls. Key consideration: If GLD reaches the $350 target area before expiration, those calls will be worth $25-$30.
