WELCOME BACK!

Oct 9, 2014 

   WELL!!!   I thought that I should offer up an idea or two intraday since the color RED is the color of the day . I do NOT want to become a  ‘BUY & HOLD’ or ‘WISH & HOPE’ kind of trader…I look to see if I can see whats happening and when a trade starts to act in a way that I didnt expect, I have to try my best to numb the “EMOTIONS” and just look at the facts. So I snapped this PIC of an intraday chart ,  the sell off of GDX today.

  Its NOT meant to be grasping at straws or “HOPING” I’m right…its just what is happening , What I see right now.

   As you can see, GDX and GDXJ have pulled back to very ‘RED’ for the day

– But they are only about 1/2 way into that move off of Lows yesterday, almost a “Test” of the top of a cup.

The VOLUME is heavy, 30 Million at lunch!   HOWEVER,  yesterday had 100 Million!  so it appears to be about 1/2 of what yesterday has if we double it from here.

One thing that is interesting to watch is OIL, COAL, ENERGY.  Just still taking a beating. I was quite surprised to see the XLE do this, because YESTERDAY it also looked like a similar reversal as Metals and Miners.  IT OBVIOUSLY DIDNT STICK!

 That signals that If that strong reversal in XLE can give it up…

we need to watch our other positions that pulled a strong reversal yesterday (Metals/ Miners).

The DOW, SPX, NASDAQ  etc  are being sold off hard.  This volatility has the feel of BIG MONEY  liquidating  some holdings.

My previous post was showing that all the negative sentiment was getting extreme,  and it looks like it is going to get a little more scary.

I still see that it could be a normal correction, as the VIX approaches 20 .

QQQ , as of mid day, 30 Million Vol.  Could be 60 Million by days end.  ‘High to normal”‘

VIX to 20??

FINAL THOUGHT-

   As traders, we don’t like to miss gains, but we equally don’t like to rack up losses.  MAYBE in times of such volatility,  it is best to avoid the WILD SWINGS and take smaller positions or even none , until the dust settles a bit and a directional trend is evident?

  Each must decide for themselves. But heres a thought….BE CAREFUL WITH THOSE CRAZY 3X ETF!  WOW!

JDST  $22 to $13 to $17 in 2 days

 Thats how the day looks to me.  Volatile so honor your stops and  best wishes to all!

~Alex