The following Long Trade ideas have exceeded their suggested stop criteria & will be moved to the Completed Trades category:
ASPS: Exceeded the suggested stop below 31.05 on Aug 7th.
CNX: Exceeded any reasonable stop (none suggested).
USO/DWTI: Exceeded the suggested stop below 14.70 (USO) on Aug 6th.
The only trades remaining in the Active Long Trades category at this time are AMD and SLW. This unusually low quantity of Active Trade ideas is a reflection of the choppy & sloppy price action as the broad market continues to grind aimlessly in the difficult to trade range that has essentially left the broad indices where they started the year. The Short Trade ideas should be updated soon as well.
I will continue to share any trade ideas, long or short, that look compelling although it would be prudent to continue to be very selective on what, if any, positions taken and to avoid aggressive engaging the market (i.e.- taking large/full position sizes and/or being fully invested) until the broad market makes a clear breakout of this multi-month trading range and the technical picture becomes more clear.
Trading ranges, if well defined, can often be successfully navigated by going long at the bottom of the range and selling/shorting at the top of the range, for example, in a well defined price channel. However, for months now the price action has been extremely sloppy & unpredictable with relatively obscure upper & lower boundaries to the range. With the extreme pinch in the weekly & monthly Bollinger Bands, it is quite likely that a sharp, unidirectional move is coming soon. Until any significant technical developments occur, market analysis & commentary will continue to remain light with my primary focus finding the most attractive trade setups.
It still appears that the biotech sector is poised for a substantial correction (LABU is an Active Short Trade that is close to offering a new objective short entry or add-on... more on that soon). Although there is still some work to be done from a technical perspective, many commodities and the precious metals may be close to or currently in the process of forming a lasting bottom. Additional commentary & charts on the various commodities, precious metals & the miners to follow soon as well. As always, any trade ideas or potentially relevant market developments that you notice are welcome via the Contact Form.