The current market is one of the "easy tape". Whatever one puts on (as long as its long) goes up - technicals work like magic and stocks do exactly what they're supposed to. We all look like geniuses. Don't get complacent -- this type of tape never lasts.
Don't be the happy little pig lulled and fattened up by the "kind" farmer (mother market) before your throat is slit one morning and you're on someone's plate served as sausage.
We were telling ourselves this morning how we're hitting the ball out of the park with every trade, like we can do no wrong, and how buying every dip is working like magic. Right after we said that there was a moment of silence -- we've been here many times before in our 13 years of trading and often it comes right before a change -- when suddenly stuff doesn't work, and stocks don't obey one's playbook. Don't be complacent. The gig is on full-play right now -- enjoy it, play it hard, but be on alert for the possibility of a change into a less benign trading environment.
And on that cautionary note, happy holidays to our readers, and we'll see you here next week.
This is a perfectly benign market where stocks bounce where they should bounce and obey technical rules -- enjoy it and play it as hard as you can for however long it lasts.
Even though we're primarily day-traders our entries are based on daily charts. What we've been telling our day-trader subscriber base is to try at least holding partial positions as swings as the follow-through lately has been excellent.
Here's another example of a perfect bounce on support:
Here's another example of a perfect trading opportunity -- we "tweeted" on this when it happened on Monday:
GMCR buyers defend the 50 SMA
Close up -- awesome!
We're closing shop now for the week (holding long $GLD $AU $SLB $CNQ $APC $SPY). Happy holidays to all of you from the three of us at HCPG-- we'll see you next week.
We dipped our toes in three stocks this morning for our longer term accts. Theme was gold and Ags.
We bought YONG at 7.16, GLD at 105.4, and AU at 39.7. YONG is very small position which we will probably not add on but GLD we will happily add at 104.5 and 100. AU we will add on at 39. Here are the charts: