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View Full Version : Back In Cash – October 11, 2011



Billy
10-11-2011, 05:56 AM
10838

Statistics and probabilities are what they are. The IWM robot interprets them most objectively and concluded that enough was enough with the long trade. Time to book profits at the open today. End of story.
Note that there is no edge found with shorting , the edge is to just stay in cash. We must admit that the last 5 days gain of + 13.76% from the 10/04/2011 low is likely too far too fast. The robot could catch a good chunk of it but anticipates that the move is over for a while.

From a multi-pivots viewpoint, I wouldn’t be surprised that a new opportunity to enter near our initial entry (64.78) , the 5-day VWAP (64.83) and YS1 / WPP (both 64.40) might come soon, as I’ve mentioned many times recently. A decisive breakdown below monthly pivot (67.14) and the first support cluster would precipitate the ideal pullback. And we can expect institutional selling pressure at the declining 50-day moving average, now at 68.86.

10839

The GDX robot remains neutral and is still waiting in cash.
Billy

10837

nickola.pazderic
10-11-2011, 09:48 AM
Billy,

Great charts as always. Thanks.

Please everyone have a look at this: NUGT/DUST are (i.e., will soon be...) 3X leveraged ETFS. Oh Boy... (https://materials.proxyvote.com/Approved/MC3609/20111004/OTHER_103324.PDF)

If this has been posted elsewhere, apologies.

Best,

grems8544
10-11-2011, 10:25 AM
Please everyone have a look at this: NUGT/DUST are now 3X leveraged ETFS. Oh Boy... (https://materials.proxyvote.com/Approved/MC3609/20111004/OTHER_103324.PDF)


Actually, not until December 1, 2011. They are +/- 2x for now.

Regards,

pgd

Billy
10-11-2011, 10:41 AM
Right Paul, NUGT and DUST are the 2x leveraged ETFs for GDX. Their indicative limit and stop price equivalence are now posted on the robot page (when a trade setup triggers).
New triple leverage GDX will be launched on December 1.
Billy

Wei
10-11-2011, 01:17 PM
Wondering what's the implication of this change. Expect more volatility ahead? Attract more trading volumes?


Billy,

Great charts as always. Thanks.

Please everyone have a look at this: NUGT/DUST are (i.e., will soon be...) 3X leveraged ETFS. Oh Boy... (https://materials.proxyvote.com/Approved/MC3609/20111004/OTHER_103324.PDF)

If this has been posted elsewhere, apologies.

Best,

Billy
10-11-2011, 01:38 PM
Wondering what's the implication of this change. Expect more volatility ahead? Attract more trading volumes?

i believe that DUST and NUGT will remain as double leverage ETF's but new triple leveraged ETFs will be introduced in December.
There will be no direct implication for the volatility of GDX, just for traders' accounts! And beware the decay effect if you hold for too long.
Volume is really low on DUST and NUGT, I guess it wikk be even worse with the triple leverage.
Billy