Hey Randy, would you say a good stop for this short trade would be about 1% above the top of the gap at 390 putting a stop at about 394?

Yep! The less things go up the more apt they are to go down!

@ROTC, I am assuming Mike was talking about your last short at \NQ 15864. we spiked above that and them faded but still above 15864 at the moment. It looked bullish this morning when it got to 15960 so I closed my short but now the market looks like it is waiting for some news to pick a direction.

Thanks so much!

I recently warned of a likely pullback in gold & silver due to the fact that EUR/USD was poised for a correction. So far, that has been the case although EUR/USD coming up on my 1.08ish target with positive divergences building, increasing the odds for a reaction on or around that level. EUR/USD up + gold/silver up so probably a bounce/reversal in silver coming soon. Here are my 60m charts of SLV as well as EUR/USD.

What short position are you referring to?

Here’s my daily chart of LIT (lithium stocks ETF). Potential (but unconfirmed) positive divergence forming but solidly entrenched in a downtrend with zero evidence of a bottom at this time. Maybe a long entry on a breakout above the downtrend line, ideally on above-average volume & following a divergent low.

On the daily chart? ..meh. If I have to squint to see if there are big gaps on both sides of a potential island candlestick then I don’t put too much into that, plus, with the post-opening fade, most of today’s gap has now been faded (which probably wasn’t the case when you asked the question). I did just post an update in this comment thread below this post you might want to check out.

I don’t see any breakout in the market but of course, close any position that you aren’t comfortable with.

TLT is approaching my 4th & final target on the 60m chart with a reversal from or around that level likely IMO. I also like the fact I’m starting to see early signs of that transition from the strong positive correlation between the stock market & Treasuries, with TLT up strong today & the lg caps flashing red & green (mostly flat) & small caps down solidly red.

QQQ is still well off its recent high & riding this 60m uptrend line with the next sell signal to come on a solid break and/or 60m close below it so the short trade still looking okay IMO.