Wednesday, October 23, 2013

NUGT clarification

In the last post "Quick GLD/ GDX/ NUGT Update" it's more than a little confusing, the post reads...

"My approach to all of them including a NUGT long and GDX November calls is longer term in nature and that goes for Gold/GLD as well. I honestly prefer to just let them do what they will do short term, if in fact the positive divegrence on the pullback looks strong, then I'll likely look for a tactical entry for new positions or add to positions. However as a longer term play, I'm not willing to try to trade around this right now, I don't see any reason to and there aren't strong enough signals to make that chance worthwhile in my view so I'm staying with the GDX November $25 calls and with the NUGT (3x long miners) long position."

However the difference between a longer term or core position and a trading position gets confusing with yesterday's posts, I closed a NUGT TRADING Position around noon for a 14+% gain (these are the two links to each of those posts yesterday).

This NUGT was approached as a trading position rather than a longer term position, this is where the position was entered October 7th with the following excerpt...

"NUGT 1 min or GDX or 2, 3 min charts all show the same in line movement which suggests that although the base is still in place, the tactical signal for a real launch to the upside hasn't filled in yet, these intraday charts usually go very positive before the larger divergence (say the 5 min positive) launches, but this can happen within a day.

For the reasons above, I'm more inclined to look at gold as a longer term core long position with less leverage, GDX / NUGT as a shorter term position, much more like the market."

This is where the trading position in NUGT was established on the same day (Oct. 7th)...

Adding NUGT (3x leveraged long gold miners ETF) as a trading position


This is the exit from that position yesterday...

Trade Action: Closing out NUGT Trading Long

I tried to keep this separate as a "Trading Position", which a is shorter term to ride signals and exited yesterday as a pullback was expected, the pullback from today.

There's 1 core long NUGT currently down about  a little under 7%, this position will stay open along with the GDX calls. Sorry for any confusion, this is why I try to differentiate a trading position from a core position (trending position).


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