“Trading Tuesday” 5.24.16 NUGT

Good Evening,
 
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.  Emoji  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!
 
DOE
 

David England has sent you a SharpChart snapshot from StockCharts.com:

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