As of last night we had two positions open and two pending a confirming candle.
What is a confirming candle?
Let’s take a look at the chart in question…
TBT: the ETF that represents 20 year treasuries to the DOWN side.
Yesterday I indicated that a brave little candle had raised its head above the resistance line and, more importantly, CLOSED there. So we put in a stop-buy to enter the market just above the high of yesterday’s candle at $ 17.09. Today’s high was $17.40, so we were triggered in. The close was $17.36.
Our trade was as follows:
$13k (10% of the portfolio)/$17.09 = 760,678, rounded to 700 shares
Our trailing stop begins life at $15.08.
$17.09 – $15.08 = $2.01 X 700 shares = $1,407 risk (<$2,760)
Note: ($2,760 = 2% of the portfolio)
Therefore all aspects of our process has been respected. All we can do now is wish the trade, god speed!
Our other pending trade, GLL = ETF for gold DOWN, did not give us a confirming candle. We continue to wait for that one.
Our two open positions are still in play.
SSO the ETF for S&P 500 UP is at about the same level as yesterday. The high yesterday was $128.80. The trailing stop which has followed the price up is now anchored only a couple of dollars below the trade price. This means the trade is very close to being risk free; a situation we love.
UDN the ETF for the U.S. dollar struggling against a basket of global currencies went onto a new high today at $20.41. The trailing stop is just five cents from making this trade risk free – excellent!
That’s it for today. Any questions or comments, please write to me at: firstname.lastname@example.org.