It’s only midday. I drew the Fib extension of EXK based on yesterday’s high and low to gauge the progress of today’s gap down, while there is no support any where in sight. Guess where it bottomed? Yes, my favorite Fib 76.4. Over and over again, especially when there is no other obvious support/resistance. The Fib 23.6/76.4 are good pivot points to watch. Made a few coins on EXK long trades today.
Today the market followed through to the downside from yesterday’s FOMC statement of no additional liquidity, coupled with Germany’s tough stance as far as conditions for bailing out the European debt crisis. FXE, the Euro, broke the all-important 131 support, jacking up and Dollar, and bringing down the equity market. Commodities, including GLD, sold off as they were being sold to raise cash. GLD broke the 200 day MA’s and bounced from the critical 153.61 horizontal support. It was an epic day today. I helplessly sold 1/2 of my remaining SPXU holding on today’s selloff, leaving me just 1,000 shares. It’s hard to imagine the money managers would get so close to making the year green and then give up around Christmas. If the market continued to sell off relentlessly as I unload my short positions, then I submit to the jinx. I’d been trading scared and getting burned out by the violent market. At the point, I just want to end the year with reduced loss. 1,000 SPXU shouldn’t shake up my portfolio too much.
Portfolio Value: $130,000
Update @ 3 pm: Attempted a short on double top on the Fib 23.6 made even more coins than the longs earlier.