We have been following Gold closely since mid-October ("A New Third Wave Opportunity"), anticipating in Elliott Wave terms, "a third of third," UP by year end. On Friday, Gold was up over $35 and GLD at the top of a key breakout level, closing at 192.01. I've been trading gold and GLD options for decades and can attest to the huge profit opportunities in options when getting gold timing right, and this may be one of those times. We took initial GLD positions back in October in both the Blue Line PRO and Blue Line Premium Services. What were once at-the-money calls are now deep-in-the-money calls, always a bullish scenario: PRO GLD Calls Premium GLD Calls CHARTS Gold & GLD charts are extremely bullish this weekend as both are on the verge of major breakouts. Further strength will beget further strength as the markets start taking notice. Alternatively, a day to a week of "consolidation" could come first. As these two charts suggest, any momentum higher now would be mega bullish. Gold Longer Term - Weekly GLD Daily Trend Model The next few weeks could tell the tale and if indeed a third of a third (of a third) higher is unfolding, we want to be aggressive in our GLD calls, buying out-of-the-money, holding tight and then rolling from deep-in-the-money into just-out-of-the money and buying time as necessary. If not yet Long: For new subscribers, or anyone not yet positioned in GLD calls, use any strength in GLD price next week to position long Gold (GLD) by adding the Jan 19th $195C (and/or strikes up to $200C). GLD Jan 19th Calls - For new positions (including rolling up from deep in the money calls) Note: Friday was a triple digit return day for many out-of-the money GLD calls. If Gold is truly beginning a third wave run higher, there should be many more of these days ahead. Alternative Expiration Series: A tad less risk, a tad less reward: GLD Feb 16th Calls Option picks: Highlighted row is my top pick, but any option included in the table is appropriate for the kind of move expected over the next 30-45 days, depending on individual trader risk tolerance. Use a 50% trailing stop to limit losses and/or lock-in gains. Banking gains: Whenever rolling up to higher priced strikes, bank some of your gains before redeploying the proceeds into the new higher leveraged calls. Stock Market: A December to Remember? This is the S&P one year ago today. SPY - Dec 2022 Other Decembers have been worse, as chronicled by Elliott Wave International in a recent update: Action Items Despite unexpected strength across the market averages last week, the set-up for a hard sell-off remains ominous and outstanding. I am monitoring key levels in all indices to the downside that will trigger downside volatility and will update in both services during the upcoming week. For now, no action called for, but be ready to buy IWM, QQQ, SPY Jan/Feb puts as the path of market in December 2023 makes itself known. The stock market is mega overbought and sentiment at major top levels, so it's only a matter of time until something breaks. Stay liquid until it does. DJI December To Remember
