Market Resistance and Gold Stocks Break

I always enjoy a three day weekend. I held QLD over from Friday, and sold it into the morning gap. The Nasdaq began the morning with a gap up to trendline resistance on the daily chart. The higher low is still intact. The market still has a bias to the long side. This backing and filling is positive for the market.

This market is full of shakeouts. It won’t surprise me to see another gap higher in the morning, even after closing near the low of the day in the major indexes. I remounted QLD at 70, and also bought some UWM near the close. Futures were up after hours, but anything can happen. I’ll sell into a gap again if I feel resistance.

In this market especially… I’m not going for any home runs. When I’m feeling good about a trade, and counting the profits, it’s best to book them. There’s plenty of dips to get back in. If not today.. then tomorrow. One of my bad habits has been letting profitable trades lose half, or all their value. Selling into strength at pivot points adds up in the long run. A partial sell can always be remounted.

XAU made the big break today. Trade in gold stocks headed higher, as that daily trendline was taken out. PAAS is a silver stock showing nice relative strength.

AEM needs to followthrough here at another new high.