Wednesday, June 26, 2013

Wednesday evening

GLD Weekly Chart
(Click chart for better view)
Pick your support level.  You may need to consider supply of physical gold could dry up if it stays below cost of production for very long.  Some say that cost is around 1250/troy ounce.  That would be 125 on this chart.

Wednesday afternoon

RRD Daily Chart (11:15 EDT)

Here's a slow money trade.  RRD has recently cleared its 2012 high.  Watch for a pullback to either the horizontal line or the diagonal support line.  If the stock bounces that is your buy and your stop could be fairly tight.  You might use 2 or 3% below the horizontal line (if that's the trigger for the entry) or a .25+ breach of the diagonal trend line.

This is a buy and hold stock.  They pay an excellent dividend (current yield is 7.5%) and the forward P/E is 8.4.  There is also a large short interest to hold up price. Finviz shows the Short Ratio of 21.56 with 22% of the float sold short.

Wednesday morning