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Posted by Brandt Hackney

Publisher of & member site Wolf on Wall Street, equities/options trader 13 yrs., 4 yrs teaching, won multiple awards for trading & indicators.

MCP & DUST Gains Taken Today

by Brandt Hackney on July 14, 2014

in Options, Stocks, Technical Analysis

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I think what makes the MCP calls we closed today and the DUST long opened Friday and closed today are the timing in what have been otherwise, very tricky assets, but the timing is all based on the signals.

From the original Wolf on Wall Street posts…

This is the entry post from July 10th, we saw some very interesting signals on what had just been a short term selling climax, which makes it easy for smart money to accumulate on the cheap and in size, exactly what they need with their position sizes without ever alerting anyone to what they are up to as few people who are stopped out ever consider who’s taking the other side of the trade, still we need good signals giving us strong objective evidence that the shares were accumulated. For MCP, there were nearly a dozen charts in the “charts” post, but here’s the gist of the signal in one chart.

This 5 min 3C chart is actually quite a strong underlying timeframe, our long entry was near the lows of the run through stops and where shorts would have entered on a break of support, 3C has the power to contradict price, showing us clear accumulation of the short term selling climax.
I like using options as tools rather than trading systems and usually want to be out before the first correction, I gave MCP a little more time as I do have reasons to like this on a longer term, but today was enough. Thus the next post from today below…

As for the DUST long entered Friday for about an 8% gain today, we were expecting a pullback in GLD and GDX, GLD saw the biggest -day drop of all of 2014 today and GDX is pretty closely correlated, being we expected this drop, we went ahead on Friday with a DUST position long until we get the signal to re-enter NUGT/GDX which we recently closed out for a +40 and +50% gain.

Here’s the post for Friday’s entry in DUST,

Again, one chart doesn’t do our analysis justice, but to sum up the reason for the entry, here’s DUST’s positive divergence/accumulation Friday, one of the reasons we entered.

DUST accumulation Friday afternoon, this was in line with a broader pullback expected in GDX/NUGT which we will be buyers of when the signals come in.

Here’s today’s exit post for DUST at an +8% gain for a single day.

I suspect we’ll be back in DUST for a bit longer, but GLD found support around the 100-day moving average and GDX found support right around its breakout level, thus it seemed like a short term correction was likely and time to take DUST gains off the table, especially because it’s pointless if we’re going to eat in to the NUGT long gains already booked.

DUST intraday 3C distribution, smaller scale, but still noteworthy.

The support areas weren’t what caused the closure of the DUST position, it was the intraday negative divegrence which was likely caused by the support areas, at least near term so as I said, I expect we’ll be back in DUST for a bit longer, but we’ll wait on the market signals to tell us when.

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