I thought I would post another of my 1,2,3 Bottom trades. It shows the 1,2,3 Bottom forming over a longer period than usual, and above the 200 SMA. The ones that form above the 200 SMA seem particularly successful. On the weekly, the decline retraced 60% of the original up move, and then settled at 50% on the second downturn. Finding support at the 50% retracement and forming a higher low, while the MACD-H and FI tick up provides further confidence. UGL is a 2X ETF that tracks the price of gold, similar to GLD. The first target is 50, and then the old high at 57. I may add to the position if we consolidate around the 20 EMA for a couple of days without losing much ground. I actually tried to enter this trade 5 days earlier and got stopped out, but when price slipped and 2-day FI didn’t, I decided to watch for another entrance. This one is profitable.

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Grant Cooke

Sustainable Energy Associates

gcooke@sustainableenergyassc.com

925-989-7117