Summer Contrarian Update

In a previous article, I developed 10 contrarian ideas to consider for the summer. Since we have just passed the solstice, let's follow-up.

The first contrarian suggestion was to short gold using ProShares UltraShort Gold(GLL Quote), an ETF that tries to replicate 2 times the inverse of the London gold price. I suggested to look for an entry above $960 and, sure enough, gold broke above $960 and stayed there for a number of days, with a high of $981.75 on June 1.

Since I had cautioned against taking a short position in gold in front of a possible rally over $1,000, a logical way to try to short once gold was above $960 would be to put in a buy-stop order for GLL at $14.50, the approximate price for the ETF for gold at $960. If gold continued to rise we could keep following the rising price. ...