Gold 401K

DZZ Gold ETF – How to Short Gold by going long-haul with gold ETF

DZZ Double Gold ETN is a relatively new form to take advantage of price action gold. This gold fund provides double the movement that the GLD ETF or the price of gold does, providing bigger opportunities in the gold sector. I recently started to use DZZ ETN for trading and have found it very useful, you can see in the graphs below.

A couple of Benefits of New Gold ETN DZZ
The fact that is a leveraged fund provides more of an opportunity for the small investor, it can have double the amount of gold exposure without having to use the margin, pay interest, and open a margin account. While trading with leverage is a two sided knife, if done properly, potential higher annual profits can be obtained.

Another reason gold ETN are becoming more popular is because they allow gold traders and investors trade both sides of the gold sector in your 401k, IRA and for Canadian their RRSP accounts. Being able to take advantage of the short side in terms of declining market, you can double your annual return on investment.

Now let's look at our current charts and see how this fund can be used.

Gold Bugs Index – Monthly Breakdown Chart Gold
As can be seen in the monthly chart, the error rate is gold breaking below our support trend line. We could be entering a consolidation phase much larger or maybe even a bear market. It does not matter, since we can take advantage of both sides of gold (long and short). The short side actually has more potential in my opinion, but most traders prefer to trade the long side, and that's what everyone learns first and feels comfortable.

Gold Miner minutes of discussion – Weekly Chart Breakdown
The gold miner stocks index has given us a breakdown, and as demonstrating that a play is not the fight against short-term trend of gold. Now it is testing, which requires operators they must tighten their stops to lock in more profits when gold decides to bounce.

Gold Bugs vs Gold Price – Weekly Gold Chart Support
Stocks Gold is testing a support level, as they have fallen in value against the price of gold, showing that a large number of investors have been scared of their positions and thus forcing the gold stocks down more than usual.

DZZ Gold ETN – How to pray for long-short
We recently had a sign purchase by the DZZ gold ETN, which has provided an excellent low risk setup near the end of July. At present, trade has increased by 28% in just three weeks. While looking for the same type of setup to go short, there is an important point to consider. When trading GLD or any other action index or futures contract to the long side is important not to enter a facility with a strong vertical trend line support, and usually not followed for any period of time. But trading the short side like this DZZ trade, the trend lines can be steeper, as prices in general, much faster decrease, thus pushing our Short Gold ETN fund higher.

This is just one example of how to trade gold and short term side, if you want more information please visit my website: www.TheGoldAndOilGuy.com

About the Author

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com. There he shares his highly successful, low-risk trading method. For 6 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return. http://www.TheGoldAndOilGuy.com

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