I thought yesterday's collapse may have foreshadowed a brutal C wave down, but that turned out not to have been the case. Tomorrow may be an even more volatile day, as the Financial Accounting Standards Board (FASB) meets to review the mark-to-market asset valuation rule. There's buying being done ahead of this news; and what happens afterward is anyone's guess. If it's a "buy the rumor, sell the news" type of event, then that C wave may indeed unfold. Or panic buying could ensue. Or the latter followed by the former! The most important price tomorrow is the closing price, and who knows what path will be taken on the way there.
No changes to our current holdings today. DUG gapped up on the open, and then proceeded to fall into the range of our buy price, then proceeded to trip the sell-stop. Technically, the gap up was too high (over 2% greater than the buy price) and invalidated the buy signal.
| Current Holdings | ||||||
|---|---|---|---|---|---|---|
| Ticker | Basis | Closing Price |
Perf. | Sell-Stop | Additional Exit Guideline | Chart |
| MELI | 17.39 | 18.53 | +6.5% | 16.86 | Sell on a negative close | Chart |
| CLS | 3.24 | 3.74 | +15.4% | 3.36 | Sell on a negative close | Chart |
| EGO | 9.01 | 9.14 | +1.4% | 8.19 | Consider selling on a close < 8.62 | Chart |
| VIVO | 18.22 | 18.10 | -0.6% | 17.32 | N/A | Chart |
A varied bunch of ideas for tomorrow, to reflect the numerous possibilities. I personally would wait until the market has reacted to any mark-to-market news before taking on new positions. There's no set time, but the announcement could occur as early as the market open.
| Ticker | Entry | Exit A | Exit C | Chart |
|---|---|---|---|---|
| SOL (ReneSola) | 4.01 | 3.65 | 3.19 | Chart |
| CEF (Central Fund of Canada) | 12.12 | 11.94 | 11.78 | Chart |
| RWM (Short Russell 2000) | 74.36 | 70.23 | N/A | Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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