I have to say that these things make me uneasy about calling the "all clear for a really big bounce yet. Yes, I'm in a full position in JNUG overnight as posted earlier but I worry that it might peter out and find a lower lower (perhaps in the low to mid $2s for JNUG) next week.
I know that falling wedges have no special meaning in EW official rules. Still, treating them as 3rds or Cs has been very good to me. I'll probably sell JNUG into that gap fill (should it occur) unless given some good reason not to.
Cap'n,
ReplyDeleteThe closing sentence on your last TVIX update has created some concern this morning,
"I do feel that if the miners are really breaking out (and the action today gets follow through tomorrow), the market only has a few days left before it rolls over."
In light of the junior miners now being in question, does it follow that the $COMPX, et al., will continue to grind higher?
Thanks,
Steven B.
They could be out of synch by a couple days so that is not the real worry.
ReplyDeleteMore to the point, note how I let myself get stopped out of TVIX yesterday and did not buy back in until the market showed me a reason to.
The recent peak in the markets could just have been 3 of 5. I've seen this grinding action before. Sometimes it's better to just go to the sidelines until you get some action that validates a direction change, especially if you are "concerned".
Use stops.
Take the small loss if you have to.
Only get back in if YOU (not me, you can't keep up with my trades in real time...) have a GOOD reason for doing so.
GL.