Buy UGL When Gold Drops 5%

UGL is ProShares 3X Gold Bull ETF. This stock is a great buy whenever the gold index or GLD pulls back 5% or more. UGL tries to make three times the advance that gold is making. If gold is advancing 16% per year, UGL should be making 48%. It may gain slightly less than three times gold, but it will be close enough to make a lot of money. Currently, UGL has good support in the $75 price range. If you want to play it extra safe, you could sell UGL whenever the price drops below the 9-day simple moving average. Then, buy it again when the daily price crosses above the 9-day average.