At long last, I exited my GLD trade before the close on Tuesday. I entered the trade on 12/21/16 at 108.25 and exited on 2/15/17 at 116.77. That would be a 7.87% gain in a little less than 2 months.
The market is now overbought but still is in positive seasonality. So we have a tailwind with a caveat of a pullback anytime now.
This is a tough spot to be breakout trading with the market overbought. But on the bright side, we are looking at a gap down which makes breakout trading a better proposition.
My basket of stocks I look at for short term swing trades has dwindled substantially. But I still have a few that could trigger.
Nothing new on the political front, either home or abroad. Just your every day new, Russia 70 miles off the east coast, growing impeachment talks by the Democrats, talk of an intelligence community out of control, and Obama setting up a shadow government in DC. Just your usual run of the mill news:)
It is getting so bizarre that the above is a normal day of news! Combine that with much of what you read is “fake news”. Either completely false or some slight truth to make the entire package look credible. So it is hard to evaluate as a trader what is really happening.
Just to get an idea, I received an email last night, in essence, asking how I could even consider laying 2/1 that Trump would finish his first term. The sender thought it was 100/1 that Trump would be impeached the first year.
This is very similar to when I bet an NFL game and I would either get ridicule or anger once people knew of my pick. That was the confirmation that the pick was a winner. It was when people told me that they also liked that side that I had to worry about the pick.
I think it is the same way here. That email just reinforces to me that laying 2/1 if you can get down is the right side of the play.
Got to get back to work. But those are my thoughts on a Wednesday morning.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.
It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
RickJ’s Handicapping Picks