Market Overview

GLD: TARGET FULFILLED!!
Janice Dorn, M.D., Ph.D.
www.thetradingdoctor.com

ANATOMY OF A TRADE

Our live trading service at www.thetradingdoctor.com practices patience and looks for good reward to risk ( 3 to 1 or better) opportunities. Back on March 29^th 2010 ( to some traders this is an eternity! ) we called a long in the SPDR Gold Trust Shares (GLD). We saw a possible right shoulder with the potential of an inverse Head and Shoulders pattern. An inverse Head and Shoulders pattern is a bullish reversal pattern. A downtrend is reversed at the left shoulder and buyers drive prices back up to the neckline Sellers then push prices down to the head and buyers drive prices back to the neckline again. Any sellers who are remaining are only able to push prices back to the right shoulder before buyers step in and drive prices through the neckline.

We stalked this trade for three months before taking it. During those three months we were asked repeatedly “What about GLD? Why aren’t we in GLD?”

Until March 29 our response was, “GLD needs more time.” Our loyal members trusted this opinion and remained patient. After waiting for three months, we saw the right opportunity. We were risking $2.50 with the reward potential of $13.50. (A 5.4 to 1 reward to risk opportunity.)

Here is the anatomy of the GLD trade:

We entered the trade on March 29 with this e-mail alert to members:

Subject: GLD: Buy Alert (partial entry)

The Trading Doctor
Monday, March 29, 2010

GLD: Buy Alert (We are entering 1/3 of a position in GLD at these levels)

Price: $108.62
Stop: $105.99

Target: (chart below for further information)
Type: Swing

The following e-mail update was sent to members on April 14, 2010

Subject: GLD: Chart Update

The Trading Doctor
Wednesday, April 14, 2010

On May 5, 2010, we sent the following mail to members:

Subject: GLD: Profit Alert (Partial)

The Trading Doctor
Wednesday, May 5, 2010

GLD: Profit Alert (sold 1/3 or our position)

Price: $114.87

Long: $108.62

+$6.25

Stop Loss: $111.49

The next day, we sent the following mail to members:

Subject: GLD: Profit Alert(Partial)

The Trading Doctor
Thursday, May 6, 2010

GLD: Profit Alert (Partial) (Selling 1/3 of our original position)

Price $118.15

Long: $108.62

+$9.53

On May 11, 2010, our trade table was posted on the website and sent to members, showing the GLD trade:

The Trading Doctor
Tuesday, May 11, 2010

Open Swing Trade Positions							Updated 5/11/2010

Stock	Bias	Entry Date	Average Entry Price	Position Size	Current Stop Exit Trigger	Current Price	Intraday	Gain/(Loss) $	Gain/(Loss) %	Target Price
GLD	Long	3/29/2010	$108.62	33%	$115.49	$120.66	Swing	$12.04	11.08%	$122.00 area


Note: The * indicates that we took profits on part of our position.

We closed out position on May 12 with the following e-mail alert to members:

Subject: GLD: Profit Alert

The Trading Doctor
Tuesday, May 12, 2010

GLD: Profit Alert (target reached, trade complete)

Price: $122.00

Long: $108.62
Profit +$13.38

And the following Trade Recap:

On the day of the crash heard round the world, we had two positions in the markets. GLD long and X short. We keep our members out of danger's way and guided them through it in live chat. Billions of dollars were made and lost in less than 20 minutes, and our members were safe. OK-we didn’t make millions, but we didn’t lose millions either. We held our positions, stayed safe and made money.

Thanks and Good Trading!

Janice

Subject: GLD: Anatomy Of The Trade!

Subject: GLD: Chart Update

Subject: GLD: Profit Alert (Partial)

Subject: GLD: Profit Alert(Partial)