NUGT Trailing Stop

As you know I've been worried about a pullback in NUGT for most of the week, I have said in the past that we see divergences, but we don't know why. For example, the infamous RIMM earning's trade, we had strong positive divergences and suspected an earnings leak with a favorable outcome, instead they missed and dropped significantly a lot like MCP, however the 3C chart did not deteriorate one bit as they usually would, they grew even stronger, again much like MCP. It was a month or so later that there was a huge management shakeup and the long term CEO departed, while we could see the market was reacting to some inside information, we didn't know what it was and that RIMM trade that was down in the teens that we held, popped up to put us at a profit in the teens without adding to it at lower prices, so it surpassed even the area where we entered before earnings.

The same thing is happening with gold because of hot inflation, but had we waited for the reason rather than the signal in NUGT/GDX, we'd be chasing a move that's already happened. The point being, most of the time we are not going to know what smart money knows, thus we follow in their footsteps and NUGT has made a very impressive gain with gold over the inflation issue.

I'm trying not to exit NUGT as I think this hasn't even started, it hasn't even moved out of the stage 1 base yet so the potential for upside gains are quite spectacular, I don't want to miss those for a pullback, but we do have a big gap today with heavy volume, you know what that often means short term so even though the 3C charts that looked like a definite pullback have shot up and confirmed in most GDX/NUGT timeframes, there are still a couple saying, "pullback", so I'm going to institute a trailing stop on a closing basis and make that part of the decision if and when to take gains and wait for a better entry in GDX/NUGT, remember I said "IF and WHEN".

The 60 minute Trend Channel used on a end of day basis, has held this entire trend, right now the stop is at $41 on a closing basis, it should be higher tomorrow as the Trend Channel keeps locking in gains.

I'll update any new stops as events warrant or just email me.