3/13/20

 

Get In:  Get Out

 

Wait seven months for a trade set-up and then gain 155% in just 5-trading days.  

 

Get in and get out.  Minimize exposure to the market.  Money is not ‘at work’, it’s ‘at risk’.

 

But what about 'sit tight'?

 

The last update (before the last session’s action) was to sit tight.  At the end of yesterday’s session, intuition said to exit and stand aside. 

 

This is a perfect example of why I have my own firm and do not manage other people's money.  Price action dictates trading action; that action can change character quickly ... without warning.

 

Some price action and market clues to exit (JDST) are below:

 

GDXJ had penetrated and closed below well established support.  In addition, the session’s price bar was astronomically wide (and likely to be tested).  On top of that, we’re going into a Friday which typically has a positive bias.  There's also a Fed meeting next week.

 

Intuition can’t be quantified.  Wyckoff stated a century ago, that with enough tape reading experience a ‘sense of price action’ can be developed.

 

We see in the pre-market session, the decision to exit was correct as JDST is trading down a whopping -28%  to -40%. 

 

If JDST trades down far enough (GDXJ higher), it may get itself in another low risk position and allow for yet another entry.  We'll see.