https://davidoengland.com/wp-content/uploads/2015/10/doe_logo_trans-with-tagline2015.png 0 0 David O. England https://davidoengland.com/wp-content/uploads/2015/10/doe_logo_trans-with-tagline2015.png David O. England2016-05-24 21:59:252016-05-25 12:58:22"Trading Tuesday" 5.24.16 NUGT
Yesterday, I stated the market action was like the “lull before the storm.” Today the storm hit the “Bears,” with all three major indexes closing up-the best gains since March. Short Covering took the NASDAQ up 2%-data from Stockcharts.com.
Before you hit the “go long” button-check out today’s anemic volume. BTW-the Head and Shoulders formation is still good until/unless the $SPX closes over 2084.
Today is “Trading Tuesday,” and I highlight a previous trading candidate NUGT-their profile from Yahoo Finance.
Before we analyze NUGT, let’s first view a seasonality chart for $GOLD. The last two year, GOLD has sold off going into June. These Seasonality charts are extremely important-do you study them? If not, why?
Key Points on NUGT…
1. Is trading with $GOLD and not the $SPX
2. Previous rallies were 204% and 99%
3. The current selling into June Seasonality pattern is accurate
4. The Simple Simon Buy Signals with the Trading Moving Averages are working well for Buy Signals
I am looking for selling to continue setting the table for another Bull run. Here is an idea, study the Call Premiums/Volume as/if the price drops. Go out 2-3 months and see the price differences.
How about setting an alert for if/when the CMF hits -.10, the RSI hits 30, or the Slow Stochastics crosses down through 20?
Either condition could give a nice heads-up, on what may come a few days later.
In 2016, let’s learn to put our “trading education” to work and let the computer do more of the work for us!
The next question-are you using Alert or Alarms at your Broker? If not, why?
The rest of the week we study select DOW Inverse Funds.
With a possible test of the $VIX previous S-support…you now know why!
Enjoy your evening!