09/21/2016: Markets finally bounced today on NO FED RAISE. The Dollar dropped, and GOLD & Mining Stocks popped.
If the current bounce off Support does not blow thru the August highs, the Markets could be in trouble.
We captured gains on some Miners:
Stopped out of AG at $12.50 for 9.7% GAIN,
Stopped out of PAAS at $18.25 fro 5.4% GAIN.
Stopped out of GDX at $27.50 for 5.4% GAIN.
We might sell more of the remaining 9 Positions tomorrow if they are in the Red Zones. We will email you for timing.
Alert! Market Risk Medium (Yellow Zone). The probability of successful Short Term Trades is lower, when the S&P 500 is Way Above the Green Line. Even the Strongest Funds can get chopped up. Either take quick gains from Money Wave Pops, or STAY IN CASH & WAIT for a larger correction.
Questions: David writes “I noticed that a lot of the open positions have stops at the same price as the purchase vs “place at recent low (support)”. Can you clarify the stop strategy? Thanks!”
Answer: After the Money Wave is > 50, raise your Stop Loss to where you bought it. See Rules