The Trade of the Day was in AEM, a breakout trade above 62.   MoneyMaker, one of SMB’s better traders, and one of the traders profiled in my book One Good Trade, made a really nice trade above this important level.  He has made money from Day One, and in every sector he has traded, hence his nickname.  Let’s discuss the trade and see if you can make it your own.

Some facts:

During our AM meeting we highlighted the important resistance level in AEM, 62.  AEM has not being able to trade above 62 all year.

Gold and the miners have been strong of late.  Yesterday was an important technical breakout for the sector.

Today on the open 114.10 was a level in the Gold ETF GLD.  GLD broke above its opening range and headed higher.

On the tape AEM broke above 62, failed, but then the second time did not drop the 62 level. 62.05 bought.   AEM made a nice move up towards 62.30 showing its strength above 62.

Fundamentally the recent news in Greece, Portugal and Spain breeds interest in Gold for short term traders.

This buy in AEM above 62 was an A trade as fundamentally it had room to run, it was above an important technical resistance level, and found strength on the tape.

MoneyMaker loaded up and held.  Young gun Casey and I were in this trade as well for less size.  I asked Casey to check the ADR (average daily range) for AEM.  He came back with $1.80.  But with this fresh news in Greece, Portugal and Spain, the fact that AEM was above a technical level, add that gold had broken out yesterday, and we wondered if AEM might have more room to run today.

MoneyMaker crushed this trade.   He took some off as AEM traded higher.  As I blog he is still long some.   Where to exit is up to you to determine, but a nice problem to have for a stock 2 points in the money.

I hope you can make this trade your own.  Don’t forget to follow us on Twitter.