****NOTE XLE: Stopped out 66.87 on 1/2 position-will revisit in the future. Took a conservative route as I will do when probing. With the FED meeting this week along with a host of other economic data, I will use extreme patience before entering our next trade. Phase trading, trade management and finding the best risk/reward setups are all lessons I hope to teach you through my example.
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***OUT at 66.87 Existing Position: XLE: Long 1/2 Position 67.75 ATR: 1.53
Name of Instrument: S&P Sel Energy Spdr Fd
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Existing Position: Long 1/3 position SGG: 27.32 ATR: .87
Name of Instrument: iPath Bloomberg Sugar TR ETN
Current Price: 33.18
***Raised:Trailing Stop: 30.89
Reason For Trade: Essentially in a downtrend since mid-2011, I have been hawking for a bottom for some time. Over 29.05 on a weekly closing basis, would be a great confirmation but for now, after a confirmed bottom formation on August 24th, we bought on the basis of a phase change to recovery. Our risk is not quite to the low of that bottom, rather under just under the high of that day since that would suggest the bottom will not hold.
***First Target: Sold 1/3 30.49.
***REACHED Second Target sold 1/3 of the original position size: 31.62
Third Target to sell ½ of existing position: 34.47
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Existing Position: GDX: Long 1/3 Position at 14.05 ATR .58
Name of Instrument: Market Vectors Gold Miners ETF
Current Price: 16.01
***Raised: Trailing Stop: 15.14
Reason For Trade: Not traded over the 50 DMA since briefly in May 2015, the bigger downtrend began in September 2014 and except for a few bounces, has remained essentially in a bearish phase ever since. With 13.00 a good risk point as a potential bottom, with the move back over the 50 DMA, risk/reward is in line for a potential move up near 16.00, with the 200 DMA at 18.00. With an average daily volume of nearly 65 million, unlike our sugar trade, this is highly speculated. If commodities are bottoming out, then miners could be as well. Some names, like Agnico Eagle Mines (AEM) are leading GDX.
***REACHED! First Target: 15.72 for 1/3
***REACHED! Second Target: Sold 1/3 16.94
3rd Profit Target for ½ of remaining position: 19.17
