Wall Street’s biggest edge isn’t technical… it’s informational. Here’s how to tap into it.
Government Shutdown? Here’s The Simplest Hedge
When markets get the jitters, gold usually soars
As time wears on, the odds of a government shutdown has jumped dramatically, and on yesterday’s Profit Panel, Geof Smith reminded viewers of a plain approach:
When shutdown talk heats up, gold is the easy hedge. You don’t need to predict every headline. You need something that stands to benefit if tensions rise.
Here’s the logic in everyday terms.
When Washington gets noisy, investors often pull back from risk for a bit. Money looks for steadier ground.
Gold has a long record of holding up better than most stocks during those periods. You don’t have to buy coins or futures. The GLD ETF is a straightforward vehicle any stock trader can use.
If you want a little more punch and can stomach bigger swings, the gold-miner funds (GDX, or the “Junior Gold Miner” ETF GDXJ) can move more than the metal in both directions.
How we’d frame it for regular investors:
- Keep it small. A single, starter position is fine. You’re hedging, not trying to win the quarter in one trade.
- Use clear lines. If GLD is firming up, build a position in steps on calm days. If the headline fades and price breaks back down through a recent support level on the daily chart, trim or exit and wait.
- Pick the tool that fits you. GLD = steadier. GDX/GDXJ = more swing. If you find yourself staring at every tick, you probably chose too much volatility.
What would make us add or back off?
- Add: If shutdown odds rise and gold continues to hold higher by the close, that’s confirmation the hedge is doing its job.
- Back off: If Congress resolves it and gold gives back the move, take the small win or a scratch and step aside. No drama.
Remember, you don’t need to forecast every twist in D.C.
When the shutdown drumbeat picks up, gold is a clean, copyable hedge. Start small, use GLD for simplicity, and let the price action — not the headlines — tell you when to add or stand down.
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To your prosperity,
The ProsperityPub Team
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Wall Street’s biggest edge isn’t technical… it’s informational.
It’s not the huge computers and data centers that give Wall Street its biggest advantage.
It’s the insider knowledge that traders like us have never had access to.
Now a former insider shows you how to tap it!
Quick hits from Friday’s show
- CROX pop with a real backdrop: Crocs jumped on a marketing tie-in, and the room noted a large insider buy the prior week. The stance was cautious: proof first, keep any option trade small and capped.
- IBM gap plan stays intact: The existing Oct 17 call spread remained on; the gap above has filled, and the team discussed taking profits into strength rather than getting greedy.
- Cannabis on headlines: A political sound bite lifted TLRY and peers. Traders talked taking some profits versus holding a small runner—headlines can fade fast.
- Etsy and “buy via OpenAI” chatter: ETSY spiked on integration buzz. The reminder: don’t let one hot headline override your entry rules.
- Process corner: Geof showed a live example (call-spread up nicely) and reviewed his scan rules (above key moving averages, reclaiming prior weekly highs, after a normal pullback)—a steady way to find names without guessing.
