Wednesday, March 4, 2009

AEM

I'm short AEM through August 09 puts. Right now it has a trifecta of moving average potential resistance. Plus it looks like a nice rounded top.

The trade is going well so far because AEM is a gold miner and gold has been doing badly. When the market was down, gold was down, when the market is up, gold is down.However, in comparison to gold, AEM has been underperforming. After having a brief breakout to 1000 and quickly falling back to 900, I'm bearish on gold.

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