At Active Trading Partners, we combine sentiment and fundamentals, with some additional charting work to try to identify key pivots for entry and exit of ETF’s and Stocks both.
This week on Tuesday morning as the US market opened, we already knew that Gold Miners were in the dumps. We had just written an article about it being “Time To Be Brave” and buy some gold stocks just a week ago. We hit MUX (McEwen Mining for 16% combined in a few days after that piece came out)
Well, this week we had been watching NUGT ETF for days waiting for the right pullback. Besides all the contrarian elements of the hated Gold Stock sector, we liked the On Balance Volume bullish divergence on the chart. So we sent the chart below to our subscribers and told them to buy from 8.80-9.30 roughly, and the ETF opened at 9.15.
We had opportunity to scale from 8.80-9.15 most of the morning, then just 1 full day later we are at $10.12, up 12.8% already and still long as of this post anyways. (We alert our subs when to sell as well). Using 8.80-9.15 average we get a scale entry of 8.97 per share on NUGT. We often take profits quickly, but in this case we think there could be a good run, so we will monitor and hold for max returns as market dictates.
Below is the Weekly chart we sent, and of course we use daily charts as well: (9.23 close of last week). Note the ON BALANCE VOLUME diverging bull indicators!!