I was def thinking today was more gap filling than weakness as well. I'm with gringo though I will be bailing tomorrow if we get hammered again or at least hedging with short gold futures. Should be a fun morning.
The dart is to exit, enter, or short? Is it NUGT you're also talking about? Your hypothesis about the gap getting closed was on target. Gringo
I have been holding since the breakout. Couldn't bail without checking if it could withstand the retracement or not. As it turned out it did. NUGT has started to push above swing high and is showing strength for now. There are many layers or potential resistances along the way, so the path is fraught with peril. This is the essence of trading though, sticking with the plan, and finding reasons to stay in, not out. We also have a new demand line visible. There have been multiple retracements and based on how alert one has been, and how trained one's eye is, a few chances have come along to enter on the long side. There isn't much to do now except the management of the position. The whole idea is to just stay alert to any developing weakness in price, and to gauge whether that weakness is temporary or lasting. Demand has started to assert itself, and we've had a 17% or so jump in price in the last two days. If this is the turning point for a long term up move, then there is potential for more upside. Whether that upside comes now, later, or never is up to the trading gods. We as traders can only keep our hands on the market pulse and make trading decisions accordingly. It's strange to see that strong moves on the short side for Nasdaq/NQ/QQQ lead to a strong move for gold on the long side. NQ has given a lot of short term false entries that reversed within a few days. If it happens again then gold might turn down too. There are no guarantees as to the direction, therefore our only salvation is in obeying our plans. The fun part is that using similar methods, one trader was short one instrument and the other long another instrument and both ended up reaping the rewards. The price based traders seemed to get today right. The price action or supply/demand traders are a rare breed and might need to replenish their ranks soon to avoid going extinct. Gringo
I have my Sell GTC @ 45 for 1/2. I think ARCA can reach 680 which would put NUGT right around that level. Then would look to sell other 1/2 at ARCA 740.
I have exited NUGT long for a small profit. The behaviour of the price with such weakness today isn't giving me complete confidence in the strength. I may be wrong but this doubt based thinking was just confusing my mind so I decided to sit out and re-enter when the mind was clearer. I can justify the DL and the HH and HL to hang in there, but I am willing to let go of any chance of profits for the peace of mind.