Sunday, April 5, 2009
March 20 (then)
April 3rd (now)
almost 8% in 2 weeks, not too shabby for a hedge trade of 2 inflation plays (which is why i picked them, b/c the risk is so low w/ these kinda hedges)
I think there alot more legs left to this, but it could very well take a few months. Not a super fast mover, and I am not "expecting" a 4% every week avg either, like it has given the past 2 weeks.
If it does, great, it not oh well....what i do expect is they will intersect/cross again, that might be in 2 weeks or it might be in 3 months. No time table set on hedge trades, the target is when they meet, per the charts. (that doesn't mean i wont take some profits if let's say gold tanks 8% in a week and dba goes up 12%, heck yea ill take profits).
But in terms of % till this trade is complete, to me its just warming up. (compare then vrs now charts)
Target: when the weekly charts intersect again. (see chart)
Posted by Erik at 8:39 PM