Yes as I said on Friday, triggered by a hair. Anyway the
sell signal will come in at $40.32, which is just over 3%,
therefore our risk for this trade is defined.
Remember, there are no V bottoms, bottoming is a process,
therefore even if GDX puts in some kind of tradeable bottom, it
won't be an easy V move up, it will be choppy and the first rally
is always sold and you always get a pullback. The move up
will either be a bearish ABC pattern or a more bullish 5 wave.
However under either scenario you always get a pullback, either
as a wave 2 or a wave B. That's why I would always look to be
more aggressive buying on the pullback vs the first entry or move
off the bottom. Also this is why I generally like to look to
sell the first rally because I always know that a pullback will
come either was a wave 2 or wave B. This is also why the GDX
system can sometimes have a whipsaw on the first trade after a
large move because sometimes it get's caught int he wave 1/A and
2/B
Triggered by a hair
Posted by matt on 18th of May 2012 at 04:01 pm
GDX - Chart Link
Triggered by a hair!
nice to get the week over with, who's up for Happy Hour? I'm buying
Did not trigger Matt look at your numbers.
Posted by steve101 on 18th of May 2012 at 04:33 pm
close was 41.63
Posted by vinaypatel on 18th of May 2012 at 07:08 pm
close was 41.63
Yes as I said on
Posted by matt on 19th of May 2012 at 05:00 pm
Yes as I said on Friday, triggered by a hair. Anyway the sell signal will come in at $40.32, which is just over 3%, therefore our risk for this trade is defined.
Remember, there are no V bottoms, bottoming is a process, therefore even if GDX puts in some kind of tradeable bottom, it won't be an easy V move up, it will be choppy and the first rally is always sold and you always get a pullback. The move up will either be a bearish ABC pattern or a more bullish 5 wave.
However under either scenario you always get a pullback, either as a wave 2 or a wave B. That's why I would always look to be more aggressive buying on the pullback vs the first entry or move off the bottom. Also this is why I generally like to look to sell the first rally because I always know that a pullback will come either was a wave 2 or wave B. This is also why the GDX system can sometimes have a whipsaw on the first trade after a large move because sometimes it get's caught int he wave 1/A and 2/B
Great advice. What indicators did
Posted by candide001 on 19th of May 2012 at 05:44 pm
Great advice. What indicators did you use to catch the bottom for the first leg up?
for gdx
Posted by vinaypatel on 18th of May 2012 at 07:08 pm
for gdx
and now its down in
Posted by sbwoman on 18th of May 2012 at 04:25 pm
and now its down in after hours.
yes GDX was down 5
Posted by matt on 19th of May 2012 at 05:29 pm
yes GDX was down 5 cents after hrs. Again the risk is defined at about 3%. Never go all in on anything, though I assume you were joking about that
I'm all in!!!
Posted by sbwoman on 18th of May 2012 at 04:23 pm
I'm all in!!!