Momentum Trader Report: 09/02/09

The market paused today after yesterdays big down move. The jobs report on Friday and the holiday weekend may have many people sitting on sidelines for now.

Although the market was flat, there is fantastic action in gold. I posted the chart of GLD last night, mentioning that it was looking interesting and would break out soon. It broke out today on huge volume, and I’m in this for a swing trade.

This article shows that September is historically a strong month for gold.

Gold stocks confirmed this breakout by making huge moves, and recent trigger RBY was on fire. I was stopped out of this one yesterday, but mentioned it on Twitter this morning and got back in at 3.10. It rallied into the close, up nearly +17% for the day. I’m still holding some.

I had RBY as a pick here back in May when it was 1.60.  I held that trade for a 20% gain, thinking it was a great trade. I’m back in, 115% later.

By the way, if you don’t use Twitter, you should. There are lot’s of great traders on there who post some great ideas. I sometimes post during the day, but not much.

OCLS was a trade I was watching today. It triggered in price, but not in volume. For these speculative plays like this, and AXL and TSTR last week, they need to trigger in both price and volume, otherwise they are not worth trading. I am keeping this on the Watchlist, but this needs a heavy volume trigger.

TXT was on the move again today. This was a past pick that I panic-sold yesterday. I should have let my stop do the work. If so, I would have been in it today for it’s +12% move.

BEXP looked good today. I am still holding some from yesterdays trigger. It look’s like it could be ready for a move above 8.

Trade Ideas for 09/03/09:

I plan to day trade any new triggers. I think we could get a bounce tomorrow. If so, some of these could move.

Good luck and good trading!