if you take a look at many of the stocks that i recently posted as hitting a target, such as GDX, LAMR, NGD, etc.., you will see that many of those names have made very sharp bounces off those levels. as i often mention, more nimble/active traders can micro-manage the the trade ideas posted here by reversing the trade of these target levels (from long to short or short to long) for a quick bounce, assuming that the shorter term (intraday charts) and some other factors confirm that a bounce is likely. i plan to do a poll soon to gauge how many traders following this site are active traders, who would like to see more shorter term trade set-ups vs. how many traders prefer to employ a less active, swing trading or investing style. since many of the trades posted here often fit the criteria for both, i will soon be making some improvements to the site whereby i can separate the shorter-term trade ideas from the longer-term swing trade and investing ideas. another change that i will soon be rolling out is to sub-categorize the trade ideas posted here as long or short trades. i want to thank everybody who has provided feedback on how best to improve the site as well as those who have voted on the recent poll as to everyone’s preference of market analysis vs. trade ideas. the overwhelming majority was to keep the current blend of market analysis and trade ideas as is so again, thank you for sharing your opinion.
as far as today’s action, my thoughts remain the same for now. one thing that would help solidify my views that we are going lower would be to see the markets sell off into the close today or maybe we hold up and gap down tomorrow below the recent lows. such a sell-off, especially and impulsive one, would help confirm what i believe i am seeing on the charts of so many individual stocks, and that is a market in distribution by the institutions with each dip, like today, being bought up by the retail investors still ingrained with a “buy-the-dip” mentality. of course time may prove me wrong but one thing i strive for on this site is to avoid all the monday morning quarterback analysis that is out there with so many trading sites coming out after a big move one way or the other telling you why it was a no-brainer trade to go long or short here or there…of course, after-the-fact. i’d much rather be wrong in my analysis but share my thoughts in advance so as to be actionable then to throw out a myriad of possible scenarios and then jump all over which ever one plays out. trading is all about analyzing the charts to the best of your ability and then making a decision as to be long, short, hedged or in cash depending on how confident (or not) you are. there’s no money to be made sitting on the fence but i also highly recommend to not ever force your trades or trading just for the sake of doing so. so as confusing as that may sound, what i’m trying to say is that there is a time to sit on the fence as well as a time to pick a team (bullish or bearish) and get in the game. know when to do trade and more importantly, when not to trade, is one the hallmarks of a successful trader, IMO.