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Friday, February 25, 2011

Broker hiccup? (NOT!)

I tried to close my IAU position this morning but I keep getting a "More shares requested than in current position" message. I even tried reducing the order, setting a stop order, limit order.... no avail.

As much as this is frustrating I am not terribly concerned about it... yet. Gold jumped a bit between my attempt and now, almost $8, and the fund jumped from $13.71 to 13.79.... about 8 cents. Yes, there is a reasonably close correlation in short term moves on this one.

I would like to set a stop and just trail it manually, I'll have to wait for the broker to get back to me... or I can call the order desk if I feel a strong desire to have this dealt with quicker.

UPDATE:
I called the trade desk and had it pointed out to me that I had an outstanding stop order in place and therefore could not add another order on the same shares (DUHHH!). I have been trading with and without stops for a while no so I just forgot that I had one in place. Once I had placed a couple of failed attempts and had them rejected then looked at the order status I failed to notice the original order nested in the bottom. Classic newbie mistake.

Anyhow, the price climbed back up near it's high for the week at $13.85, I closed it out at $13.77 so I don't need to sit on it for the weekend. With the Middle East shenanigans it may very well gap one way or the other by Monday and I would rather not deal with that... so an overall 3.11% gain on a short term gold rally trade.

I look at the entry and exit based on the gold futures contracts and drool... a little. $6,000 in profits. Now I am not trading those so the point in moot but what is interesting is that there was a bit of a disconnect between the percentage increase between the ETF and the futures. Prior to this week they were tracking with the ETF a little ahead but this week the ETF has been a full 1% lagging. A shame as I was likely to be closing the trade this week it would have been nice to have been able to post an extra point on the return.

Jeff.

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