In this environment with little retail volume, managing risk is key, so sitting is cash and not loosing anything is a good move. Unless retail totally abandons the markets, at some point we should get a nice trend to follow (either up or down). Until then it is scalp trading on very ST or intraday turns. So sitting in cash wait for a juicy opportunity is a good move. Took me a while to develop some patience and wait - it isn't easy, one wants to be actively doing something.
Today's drop in GDX brings us back down toward the lower channel line. Watch for that level for a lower risk entry. Otherwise trade any breakout over today's high and close over 50dMA of GDX.
For a clue of where we could be, look not only at the channel lines and the price relative to those lines, but also look at the last time the POG had a similar type of run up. That was the April to June 1, 2009 run in POG. What happened after that run up? I've added a few lines (grey & orange) to highlight the similarities.
Good luck trading!
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