Taking A Big Breathe After Yesterday’s Rally

March 11th, 2009

As expected, the markets took a minor day off from its new bullish mode. I had mentioned earlier this morning that I was expecting a minor pull back from natural profit taking after a nearly 7% one day move up. Still, I am glad to see the market shake off mid-day losses for some slightly positive gains. Gold is starting to make a short term bottom which is becoming very interesting but just not enough so to start going long – I’ll let you know of course when we reach the long Gold point. As for member’s longs, I sent out an early morning update advising everyone to take profits on MET after the open this morning which looking back was an amazing call as you can see from the graph below.

 

met

 

Our complete trade consisted of the area inside the GREEN box. My idea behind this was of course that a move of over 40% – which is what we made in LESS than 3 DAYS on this trade – was getting unsustainable. And, as you can see, MET sold off pretty good through out the rest of the day. Now, does this mean that it won’t come back hard tomorrow? Of course not, but when you are staring a 40% profit in the face, you have to take money off the table – period. I’ll be back later tonight after a coaching session with a NEW TRADING VIDEO.

  • Share/Bookmark

Comments are closed.