GLD price move has been cooperative so far with our earlier assessment. GLD was taking a little bit of a breather but has continued downwards. Althought that little congestion might not look threatening I was acutely attuned to price taking a turn up from there. Those who have less fear issues would have let price gyrate and even pull upwards as the price move upwards wasn't even close to 50% to cause serious doubts about the down trend.
That being said the SL was broken at one time and it is at that time that the decision to stay in or give price some room to breathe needed to be made. I decided to not mess with the price, but if one had exited after SL break and then re-entered when weakness developed again it would have also been fine.
Yesterday's move was tricky as price was not breaking below the swing low created before the break of SL. The lack of continuation to the downside was giving hints that perhaps price is having difficulty moving down and an up move or a trading range might be in the offing. These are the dilemmas a speculator has to deal with. Today though price has dropped below the swing low and now we have a new SL. There are times when it all becomes mechanical and simple and then there are other times as I wrote above when uncertainty creeps in. It's dealing with this uncertainty somehow that makes or breaks a trader. Sitting there like a deer in head lights is not the best of conditions for a trader to be found in. Having a plan that at least has some logic and testing behind it, even though it may not be perfect is better than that state of immobility. For us now until this SL breaks we're just going to keep true to our short position.
Gringo
That being said the SL was broken at one time and it is at that time that the decision to stay in or give price some room to breathe needed to be made. I decided to not mess with the price, but if one had exited after SL break and then re-entered when weakness developed again it would have also been fine.
Yesterday's move was tricky as price was not breaking below the swing low created before the break of SL. The lack of continuation to the downside was giving hints that perhaps price is having difficulty moving down and an up move or a trading range might be in the offing. These are the dilemmas a speculator has to deal with. Today though price has dropped below the swing low and now we have a new SL. There are times when it all becomes mechanical and simple and then there are other times as I wrote above when uncertainty creeps in. It's dealing with this uncertainty somehow that makes or breaks a trader. Sitting there like a deer in head lights is not the best of conditions for a trader to be found in. Having a plan that at least has some logic and testing behind it, even though it may not be perfect is better than that state of immobility. For us now until this SL breaks we're just going to keep true to our short position.
Gringo