Bookkeeping: Cutting Back Powershares DB Gold Double Long (DGP) As it Retests All Time Highs

We have a classic technical setup in the gold chart (I am using the gold ETF since the commodity has a 1 day delay in the charting software) - gold has retraced to come within smelling distance of all time highs.  From here you either get a double top formation or a breakout.*  Generally in a slower moving chart such as this, the stock/commodity will not break through on the first try, but we'll see how it goes.

*technically there was a mini double top back in June which formed within a week, from which a quite substantial selloff occurred, so perhaps classifying this as a 'double top' formation is a bit off, as this is the third foray into the area.



For now, I've cut back the position by 70% in Powershares DB Gold Double Long (DGP) with plans on purchasing the stake back either on a pullback to support or a breakout to new highs.  This is just a short term trade within what is a heady multi year bull market in the yellow metal.

Long Powershares DB Gold Double Long in fund; no personal position