GDX and IWM Cluster Strengths for June 6, 2011

[Billy]

Billy; The MS1 of 81.46 and QS1 of 79.32 seem based on the MPP from May and the QPP of the 1st quarter.
Do you switch to June prices and prices from the 2nd quarter only on 7/1?

Best regards,
Robert

Robert,

Sure. The pivot and floor levels are always derived from the previous period close. We still need the full data from June trading close both for new monthly, quarterly and semester levels, so they will change on 7/1.
It is precisely such changes that allow progressive shifts of support/resistance clusters strengths over time leading to more or less hinderance to price progress. Near the end of any period, one can "cheat" and project the next period levels for some foresight. This exercise is most important at mid-year deadlines and I will comment on this in due time. Billy

[slgerritz]

The current price of GDX as I write is $54.76. This is pretty well below the new entry price of$54.86 and getting close to the original stop of $54.34. I am little uncertain here as to what I should do now. Should I wait until the original stop is triggered and sell all or buy more now and ignore the orginal stop and rely on the new stop? How will either effect my odds?
Steve

[Pascal]

The current price of GDX as I write is $54.76. This is pretty well below the new entry price of$54.86 and getting close to the original stop of $54.34. I am little uncertain here as to what I should do now. Should I wait until the original stop is triggered and sell all or buy more now and ignore the orginal stop and rely on the new stop? How will either effect my odds?
Steve

If you took the original GDX trade, your stop loss might execute today and the trade will be a "wash". It is not because you are close to the past entry that the trade dynamics is the same. It is not! The GDX robot is closer to a short than to a long signal. If a short is not triggered at the close, then the oversold situation could trigger a new long opportunity for tomorrow, with new pivots settings. So, you respect the stops and see tomorrow what the robot's stated direction will be.


Pascal

[slgerritz]

If you took the original GDX trade, your stop loss might execute today and the trade will be a "wash". It is not because you are close to the past entry that the trade dynamics is the same. It is not! The GDX robot is closer to a short than to a long signal. If a short is not triggered at the close, then the oversold situation could trigger a new long opportunity for tomorrow, with new pivots settings. So, you respect the stops and see tomorrow what the robot's stated direction will be.


Pascal

Thanks Pascal,
Steve