Although the chart is tough to read, it compares Anglo Gold (AU) to the Gold ETF (GLD) through last Friday.
On February 10th I blogged that I swapped AU for GLD share for share to reduce volatility and to reduce exposure. I sold AU at an average price of $58.40 and bought GLD at an average price of $54.80.
I did not expect that the two would diverge in this manner so quickly.
In that first post about this trade I noted that after a big run I wanted to just lighten up a little. I certainly was not early in calling a short term top. The focus of this should be that AU (and all the miners) had a good run and rightly or wrongly I thought cutting back might make sense.
The trade was a tweak not a big bet. Longtime readers know I don't trade a lot but actively managing your portfolio means you may need to make changes every now and then.