Sunday, June 17, 2012

SOLD NUGT @ $12.85

I sold my position in Direxion Gold Miners Bull 3X ETF (NUGT) at $12.85 right at the close of last Friday's trading session, booking a 9.8% gain. This brought my cumulative % gain since mid-March up to 95.1% - nearly neutralizing my staggering cumulative 97.7% loss with TVIX, also in mid-March. And my 2012 trading record now includes 18 wins 2 losses and 3 trades still open. That's a batting average around 90% and I really don't expect to be able to do much better anytime soon.

My TSI Trading record has been updated.

Here is a daily chart of NUGT that shows the way it looked when I hit the sell button.

I do not use this FreeStockCharts platform much while trading anymore. I like the way the charts look, but my fascination with home-made indicators keeps me watching the Think or Swim platform much more, as in the following chart.

But the chart that concerned me the most was this next one. It is /GC , the Gold Continuous Contract, with the fascinating volume indicator I created a few days ago (New Study14). History showed me that the daily buying pressure for the Gold Futures contract was not without limit before price had to snap and at least take a short breather, if not downright collapse. With a reading in excess of 99.5 out of 100 I figured it was time to sell NUGT as I had a nice gain and take a step back - wait for a more favorable setup. So, that's what I did.

Anyway, gold has been trading this Sunday evening a little over one hour. The range began at $1631 dropped to $1607, predictably rebounded to the Fibonacci 50% retracement level near $1619 and predictably has now fallen to the 38% retracement level for the obligatory retest (which appears to be failing). 

I swear, if I have seen this trading pattern of gold's once, I have see it a thousand time. That will make a great research project to write about.... but another day. Dinner is ready!

Have a great week,


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