Market Close June 23rd, 2020

We have had a bit of excitement today. As you may remember, we were stopped out of GLL yesterday. GLL is the ETF that rises as Gold declines. Once that happened, it became logical to check the inverse of GLL which is UGL. Now, UGL goes up when gold does – just twice as fast. As we have talked about because of this characteristic of the ETFs we trade in this exercise, we have to be even more disciplined about stops than ever. Not sure how we can be more disciplined than using them with every trade.

Let’s take a look at the UGL chart.

UGL

You can see that our trade is all systems are a go. The blue EMA (21 exponential moving average) is above the green 55 EMA. This is our quick read of trend which is UP. Our triggers, either the price or the red EMA (8) is above the blue. We had one tiny impediment when last we looked, the resistance level is close to our trade. We need, therefore a close above that level to really be all systems go.

Today our little green candle closed above the resistance level. We are therefore placing a stop-buy for $64.47. This is just a little above the high of the candle that closed north of our horizontal black line.

If the price of UGL advances tomorrow above $64.47, we will be triggered in.

At that time I shall give details: trade size, risk management, etc.

That’s it for today. Any questions or concerns, please drop me a line at: charlesgoddard2020@gmail.com

TTFN,

Charles

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