Well, I slept past the open, again. Got to my screen about 11:30am EST. Really should look into overnight FX trading! :-)
Anyway, I saw that the overall tone was negative, and after glancing around a bit, I put on a short position in Goldcorp Inc (NYSE: GG). What did this entry have going for it?
- It was trying to make a new low-of-day (and had been for the last hour or so).
- The new low would be a break of round-number 29.
- This is all just under the low-of-day from two trading days ago
- NYSE $TICK consistently -600 to -200 over the previous five minutes.
- It was near the illustrious always magical 5MA on the 30-min chart.
- (new idea I’m playing with): Rising 5-ADX and flat 14-ADX on 5-minute chart.
So I got in at 29.01. It didn’t break through 29 with much energy, though. Instead it meandered between 28.98 and 29.03 over the next 10 minutes. Since it was doing lots of volume, I feared that someone was going to hold it up at 29. Because of that, and the fact I was really hungry and wanted some breakfast/lunch, I got out at the next dip. This was 28.94, for a 0.5R profit in 12 minutes.
If I had known that the bottom was going to fall out of the QQQQs and DIA in the next 10 minutes, I might have held off on my meal a bit! :-) Of course GG was primed to fall with the markets and I would have made a little more money. [edit: of course, I feel funny saying something like of course this gold stock will fall with the marktes, because normally I think of gold as something that trades against the markets. Sometimes, it just doesn't work that way, though, for whatever reason...]
Here’s the 30-min below, with the candle I traded in circled in blue:
… you can see that big drop in the following candle, but the candle after that saw the price rise all the way back to my actual cover price. So, you never know… had I stayed in I might not have made any more money after all! :-)
Here’s the QQQQ’s with the big drop circled. That’s the 30-min candle after I covered my short position. Ouch! But, I’m not in the business of predicting the future, so I don’t feel bad when it turns out I didn’t! :-)
(and my breakfast/lunch tasted great with 0.5R already behind me)
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| GG |  |  |  |
