Friday, August 19, 2011

Slowly dropping towards previous lows

ES-futures gapped down on the open, rallied just over 1150 resistance and dropped back towards premarket lows. Ending the day close to the lows is bearish, ending the week near the lows of last week ain't bullish either. But on the weekly charts we also have a very bearish candle, albeit on lower volume than the previous candles.
So for the moment, I would put my money on the bears.

While the market clearly isn't looking healthy at all, there is still money to be made on the long side. In silver or gold that is. Both performed well today, especially silver (+5%).

Rather oversold at this point, a small bounce seemed in the books today. I went long TNA when the trendline of the previous day broke. Although the volume pattern looked great, there was no follow-thru and I was stopped out with a loss (-1.79%).

Later on, the same pattern formed on most charts; a triangle with lowering volume. The breakout occured with good volume and I went long TZA. I took profits on 1R, 2R and just above 57 (average: +1.97%). I could've made much more, but wasn't interest in holding over the weekend, certainly not with recent volatility. No need to get greedy...

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