Monday, August 24, 2009

Bought GSG (Commodities Index)

GSG is the ETF representing the Goldman Sachs Commodities Index. We just purchased this at $31.59 and expect it to reach $34.00 without too much resistance. This would be about an 8% gain. It has much greater potential in the longer term. We aren't going to give it much room to go the wrong way before we would get out. I have set the stop at $30.59 which gives a two to 1 risk to reward ratio. In the worst case it should be supported by the increasing red line but I expect it to advance more in line with the yellow line.

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