Continuing where we left off yesterday, the shorts saw the start of a good move. One option to lock in profits as the trade works in your favor is to trail your stop above the high of the prior day’s close (for shorts) and vice versa for longs.
Gold Has Fallen Off the Radar
The GLD has broke it’s multi-year uptrend. The fact that GLD hasn’t been talked about as of late is a positive sign for bulls or those looking to hedge by buying the precious metal. We look to be forming an inverted head and shoulders which is a complex bottom reversal pattern. If the right shoulder fills out look for the GLD to pop up on our buy watch list.
When we have a potential long and it gaps up above the prior day’s bar, we wait for that first 15-min candle to close and place our entry above the high of the first 15-min bar. In this case, the 15-min bar was the high of the day so we never got an opportunity to enter. The same is true for shorts only in reverse.
Stocks to Watch on 1/5:
Longs: ALK, HPY, NVLS, TRGP
Shorts: AEM, SA
One Final Note: Alcoa (AA) kicks off first quarter earnings on Monday. Make sure you’re aware of when your positions have earnings announcements.
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