Back to the future

BellaGuest Blog7 Comments

The future’s on it’s way, the past is gone
Old and rusted, with your busted bones
Break the crystal ball, you’re on your own
Wipe away the fear of the unknown

Now, here we go, on with the show
Makin’ our way, just living for today
It’s in my sight, and the time is right
For takin’ a bow, into the now………..Tesla

Today the $62 level in GDX came into play in a big way. $62 had been support both early this morning and yesterday. Just before lunch GDX trades down to $62 and gets a feeble bounce. The third time here and no juice to the upside.  Get short, maybe the future is on the way!

Both times here before we notice the aggressiveness of the buyers off the level. Wipe away the fear, the tape is giving clues. Get short.  The crystal ball of support breaks, and what are you going to do now all on your own?? Get bigger, the past is gone. Exactly, past support is gone …embrace the future and stay short.

Now here we go on with the show. Let the tape tell you when to cover. Nice trade. But wait sometimes history repeats and the past comes into view. A nice low volume rise back to the past but you’ve seen the future and you know what to do. Get short again. Its in your sight the time is right!  Makin our way, just trading for today.

Jeff Davis @shaq48_trading

7 Comments on “Back to the future”

  2. Hey Jeff,

    Does the fail of breaking the 63 number (what was a pullback rest place on the day before) already give you the hint of not taking a long at the 3rd time and taking the short under the S/R?

  3. Hey Jeff,

    Does the fail of breaking the 63 number (what was a pullback rest place on the day before) already give you the hint of not taking a long at the 3rd time and taking the short under the S/R?

  5. Ryan, good thought but not really. You could have still taken a long, the risk reward was there. The tape though would have told you to exit it quickly because of the lack of aggression off that support. The third time into support should have had you maybe being smaller initially and needing confirmation to get bigger.  

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