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Robert Edwards
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Contrarian daytrading technician who specializes in locating high probability short term trades while predicting price movement directions with over 85% accuracy. Most of my trading involves either extremely short term micro scalping of stocks or commodities (using 1 minute bar charts), or swing... More
  • Robert Edwards Trading Update For May 20, 2013 1 comment
    May 20, 2013 11:00 PM | about stocks: CLF, GDX, GLD, NUGT, DUST

    GDX

    This gold miner ETF bottomed right on schedule today. Check out the article I posted on Sunday and look at my comments to see my latest thoughts.

    CLF

    Predicted the top at 23.75 right on target, and I was looking to buy in size back at 21 and 21.80, but this stock has been much weaker than I anticipated and even traded some under 20 before stabilizing. The trade blamed the extra weakness on China. Who knows. Today we got a close above 21 but I cannot say that I am that impressed and I lightened up today so that I have capital to add on weakness should it decide to fall under 20 again. Still like this Cliffs Natural stock on all weakness under 20, and believe it hits 28 to 30 before it trades at 15 or lower.

    Lean Hogs & Live Cattle.

    Regarding Lean Hogs, very back and forth action going nowhere fast, and my out-of-the-money July calls and puts have lost over half of their premium. Can't figure out which way we are headed so just sit and enjoy the premium decay. Regarding Live Cattle, we finally traded down to 118 support that I was looking for in August and immediately bounced $2 higher. Like buying dips in Cattle on extreme weakness for nice scalps but not that bullish overall.

    Conclusion

    I cannot remember a time when I had such trouble finding even a single stock or commodity that I wanted to trade. I guess right now I am focused on gold and GDX and will trade that. The big bullish reversal today in gold was very significant and should provide support on dips for at least a week which to me is long-term. Although we may consolidate sideways Tuesday and Wednesday, I am looking for another thrust higher on Thursday, May 23, 2013. I plan to be going long mini and micro gold contracts while buying DUST on $5 dips when DUST hits 90, 85, 80, etc. to lock in my profits and day trade.

    Stocks: CLF, GDX, GLD, NUGT, DUST
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  • Robert Edwards
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    Author’s reply » Someone asked me if CLF was going to 30 soon? Well, short-term I have been predicting that CLF rallies 10 to 12 dollars off the low, which at present, would project a price of 26.62 to 28.62, since the low so far is 16.62. I base that projection on past corrections CLF has made, when it fell off a proverbial cliff as it is so inclined to do. The amazing thing is not that it falls off so often, but that it manages to climb back up. We could have more back and filling in the 20 level or slightly lower but should retest 23.75 shortly and if taken out, we are off to the races higher.
    21 May 2013, 05:18 AM Reply Like
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