Thursday, April 29, 2010


I expect this horizontal time correction in gold to continue with an upside breakout. I will make secondary entries in GLD, IAG, and GG, as well as other gold names during that time. I will exit the remaining 1/4 swing in WYNN today. So far all swing plays (MGM, LVS, WYNN, IAG , GG, GLD, etc.) have either been booked for a profit or are profitable on paper.

The market is in a channel, but more specifically, in a broadening reverse symmetrical triangle. This type of consolidation typically lasts for a while. At this point, this pattern is neither bullish nor bearish.

I have three finals coming up very soon, so I will not be executing rapid-fire scalps for the next 2 weeks (for the most part). Instead, most day trades will last longer than just a few minutes with more aggressive entries and delayed exits to accommodate my lack of time.

Below are two doji plays. Remember that doji are indecision days. How do you play doji gaps? You either go long or short either 1) upon a gap up above the previous days highs or a gap below the previous days low or 2) upon intra-day breakouts or breakdowns of said highs and lows. Once direction is determined, the prevailing side usually continues the price action in the direction of resolution.

Tuesday, April 27, 2010


The GLD did what I had anticipated and buy stops were triggered in the following today:

1) GLD - $114.10
2) IAG - $16.41
3) GG - $40.92

Here was the first Gold Update written yesterday:

Monday, April 26, 2010


I wrote a post on April 10th regarding my interest in gold. I was waiting for the sector to prove to me that it is good shape to make a full exit out of a multi-month base. The criteria I was looking for was one final consolidation. This criteria has been met in the form of a developing symmetrical triangle that is using the 20-day MA for support. In addition, referencing the GLD, I am using $114 as the neckline for an inverse head-and-shoulders.

The important aspect of this consolidation is the evolution of it. From December 2009 till early February 2010, gold formed a descending triangle. From that point up until this month, gold formed a channel. The entire pattern exhibits both an inverse head-and-shoulders as well as a rounding base. This month is the most important as short-term consolidation was able to maintain the 20-day MA as immediate support. The only concern is that all four MA's do not have positive slopes, still leaving remnants of a channel's characteristics.

The moment the GLD breaks through $114, I believe it will be time to accumulate gold for a swing, and perhaps, a positional trade. for a target as close to the December 2009 highs as possible. The only risk is one overlooked pattern, which is the ascending channel. As long as the following criteria are met, I will deploy gold positions:

1) MA slopes are positive on the 20-, 50-, 100-, and 200-day MAs.
2) The GLD breaks above $114.
3) The 20-day is not violated as nearest support.

If this is executed, then gold will have successfully breached the channel and the inverse H-and-S neckline. Keep an eye on this sector and it's components as we approach May.

Lastly, I have finals soon so don't expect me to do my usual rapid-fire trading for the next 2 weeks. If I will be trading, then the time frame will be longer than just a few minutes.