Trading was fairly active most of the day considering it’s getting close to Labor Day and most traders are thinking about relaxing for the end of summer weekend, or already are.
The trade in MVV was closed today as the second half of the lot was sold for around 2R. The stock was sold in the 72.4 area because it was near the trendline and trading up for four days straight. Tomorrow is another day in the stock market, and more trading opportunities await online.
It will be interesting to see which way the MVV and MZZ ETF’s break. Notice how they’re both winding tighter. It looks like there’s going to be a big move coming when the big boys come back from the Long Island Ice tea weekend.
The XAU presented an opportunity to take some entries in a few gold stocks. As has been said before, the gold stocks have been in a bull market for a few years now. Bouncing near support and showing strength provided entries in GLG, AUY, AEM, and MDG to name a few. Gold stocks were bought as they made higher highs today. Stops were set below yesterday’s low for each respective stock. Money management dictates that stops move to toady’s low for trading tomorrow. With such a potential for a powerful move though, the stops will stay until they’re either hit or these stocks break out. This could be a potential long-term, 3 month or so trade in the gold sector.
An alternate entry into the gold stocks could be taken as they break out, or on intraday charts. Whichever way the XAU breaks, it’s going to be explosive.
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