Professor’s Comments August 24, 2015
Posted by OMS at August 24th, 2015
It’s been another fantastic day to be a trader.
Knowing that the current down leg was likely only part of wave 1 down, and NOT the beginning of a Major Crash, the 1,000 EXREMELY oversold drop at the open was a perfect opportunity to be buying a few DDMs for the bounce. Actually, it was a gift!
Same for gold. With gold opening higher this morning, and GDX opening lower, it was an absolute gift at 14.85. GDX promptly rose .75 cents or $750 for each 1000 shares purchased. Gold shares alone produces another double cigar day!
Anyhow, the market is starting to stabilize, and it appears the wave 4 of 3 down is underway.
I’m not going to do anything more with the indexes today, but I am watching gold.
Here’s the deal: IF gold weakens a bit now and GLD pulls back to support at the 108 level, I’m going to Buy back the December 119 calls I sold late last week for a nice profit.
For those of you who don’t like to trade options, you might want to look at adding to your shares of the miners on any pullback. I’ll be looking at GDX and RLGD. I don’t believe that the miners will be pulling back (percentage wise) as GLD. So IF I see GDX or RGLD oversold on the 15s or 30s, I’m a buyer.
Smoking another cigar.
That’s what I’m doing,
h
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments