Pulbacks In Perspective


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Jeff Clark: If you're bullish about the long term for gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV), it's mouthwatering to watch them undergo a major correction after taking earlier profits that added to your deployable cash. For a little historical perspective on pullbacks, consider the following charts.

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The current 15.6% gold decline (NYSEARCA:GLD), while considered a “major” correction, is not out of the ordinary, particularly following the late summer spike. And after each big selloff, there was a price consolidation phase that in every instance led to higher prices. The message: hold on, and buy the big dips.

Not surprisingly, silver's (NYSEARCA:SLV) biggest corrections are larger than gold's. This is also true for the rebounds; they've been quite dramatic. If we apply the biggest three-month recovery of 44.3% to the current correction, that would take silver to $40.63… meaning we probably shouldn't expect $60 silver by year-end.

Courtesy of Jeff Clark, Casey Research

Posted with permission of author by Wall Street Sector Selector

More on this topic (What's this?) Read more on GLD)" wikinvesttrackingurl="http://www.wikinvest.com/stock/SPDR_Gold_Trust_(GLD)" wireTopic="SPDR Gold Trust" onclick="nv.Wire.BloggerTracker.trackUrlClick( 1197087, 220939 );">SPDR Gold Trust, SLV)" wikinvesttrackingurl="http://www.wikinvest.com/stock/IShares_Silver_Trust_(SLV)" wireTopic="IShares Silver Trust" onclick="nv.Wire.BloggerTracker.trackUrlClick( 1197087, 5946 );">IShares Silver Trust, Silver at Wikinvest

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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