Merger news stoking gold again
The merger news this morning has some short covering taking place in the gold sector, and though I'm bullish on the sector, I suspect you still have to buy weakness and sell strength in that sector. That's what I'm doing. In fact, I let most of my metals out this morning on the strength.
In the popular press and the literature, you see a complete concentration of entry and even then, entry is almost totally skewed to buy entries. What isn't covered is exits which is where the money is made or lost. I'm not downplaying entry, but it's not everything. You can have the greatest entry in the world, but unless you exit at a better price (long or short), it doesn't mean anything. You can squander great entries.
I plan to use the TA Charts blog to discuss subjects related to TA and this is one of them. You'll see me talk about this as well as setups, risk/reward, etc. Remember, it's important to catch the meat of the move to make money, you don't need the edges and you don't need to see, nor do you want to suffer through the market's habit of taking the meat of your gains back from you.
As for today, we are seeing some sticky price action here early. Two hours into trading and the market is slowing climbing on light volume again with generally stronger internals. Although I'm embracing this move and expecting a slow creep higher, I'm not losing sight of the fact that this is year end and we have to consider what's next. I let some of my marginal oil trades go this morning with that thought in mind, for example. My desire is to catch a nice big up day somewhere along the line either this week or next to sell into strength in a general way. We'll see if the opportunity comes along.
In the popular press and the literature, you see a complete concentration of entry and even then, entry is almost totally skewed to buy entries. What isn't covered is exits which is where the money is made or lost. I'm not downplaying entry, but it's not everything. You can have the greatest entry in the world, but unless you exit at a better price (long or short), it doesn't mean anything. You can squander great entries.
I plan to use the TA Charts blog to discuss subjects related to TA and this is one of them. You'll see me talk about this as well as setups, risk/reward, etc. Remember, it's important to catch the meat of the move to make money, you don't need the edges and you don't need to see, nor do you want to suffer through the market's habit of taking the meat of your gains back from you.
As for today, we are seeing some sticky price action here early. Two hours into trading and the market is slowing climbing on light volume again with generally stronger internals. Although I'm embracing this move and expecting a slow creep higher, I'm not losing sight of the fact that this is year end and we have to consider what's next. I let some of my marginal oil trades go this morning with that thought in mind, for example. My desire is to catch a nice big up day somewhere along the line either this week or next to sell into strength in a general way. We'll see if the opportunity comes along.
2 Comments:
I bought pdg am and sold at 2pm-----thought that buyers would be there--not many---looks like alot of sellers trying to get out!!
Heavy asking price versus bid price.....
Tim,
They closed the metals rather well today but I'm really concerned that it's going to be difficult to get a another leg up from here. One thing I am seeing is that the stocks are actually acting better than the metal. Too early to know whether there's more to that than simply a day or two as I've seen both situations in the past come and go.
The other thing I noticed is that the small metal stocks really rocked today. Takeover thoughts are simply folks off for the holidays having their day at the trading desk?
We'll see. For now I'll sit these out again until I get some weakness to buy. I suspect the next retrace takes NEM below that small gap it has been holding. If so, we should see sub $48 prices.
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