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Robert Edwards
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Contrarian daytrading technician who specializes in micro scalping of stocks (using 1 minute bar charts), swing trading of stocks overnight, weekly stock option premium selling, pre-market and post-market psuedo market maker and stealth trading activity, and selling commodity option strangles... More
  • Market Opportunities For May 28, 2013 2 comments
    May 28, 2013 11:02 AM | about stocks: CLF, GDX, GLD, NUGT, DUST

    CLF

    Sold out in premarket the shares bought near close and aftermarket on Friday. Got 40 cent profit. Iron ore prices fell 2% in China on Monday so CLF struggles in here, but again, all dips are buys in my opinion. Not happy with the struggle CLF is having so far today but 20 remains solid support.

    GDX And The Metals

    I am bullish gold metal in here so I like buying GDX on dips. Commercials are heavily long while hedge funds are at record short interest levels. This should get resolved by rallying to 1450 or higher in gold futures which should force some short covering. I believe August gold closes above 1450 before it closes below 1350. I would not suggest anyone play the triple ETFs of NUGT or DUST right now as we are in a consolidation phase right now and it is too dangerous to play these until we develop a trend again.

    I have been buying micro gold contracts on dips, along with buying July platinum 1450 and below for nice scalp trade profits. Platinum is very bouncy in here and doing great.

    Currencies

    On all new lows in June Australian Dollar I believe one can buy. I have buy orders sitting at 9550, 9500, etc., buying every 50 cents lower with intentions to sell out on 100 to 150 point rallies. This strategy has worked well since June Australian dollar fell to 9850 and buying on dips should work even better the lower we fall. I am also scalping from the long side in the Australian.

    Other Commodities

    I believe crude oil is a buy on dips and it should rally a bit in the next couple days. I would switch to the short side once July Crude Oil approaches 97 to 98. I am cautiously bullish live cattle in here but bearish on lean hogs. I am looking to sell out of the money lean hog puts on strength, in the August and October option months.

    Disclosure: I am long CLF.

    Stocks: CLF, GDX, GLD, NUGT, DUST
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  • Robert Edwards
    , contributor
    Comments (587) | Send Message
     
    Author’s reply » Click on the following link to read the most bullish article that I have seen in a long time. http://bit.ly/154N2mD
    28 May 2013, 04:34 PM Reply Like
  • Robert Edwards
    , contributor
    Comments (587) | Send Message
     
    Author’s reply » Aussie dollar was a buy at 9550 as predicted and got a nice $1.00 plus bounce off that. Platinum a nice buy on Tuesday but today it is not as strong because DOW is weak and platinum selling off with autos (think catalytic converters). Still, platinum solidly above 1445 to 1450 support.

     

    Wrong on CLF though as it traded down to 18.50 nearly filling the post earnings gap. What can I say but the bearish sentiment is trumping the technical causing this dog to bark pretty loud today, but I am holding my core position for another day, and scaling in more longs on weakness. Contrarian investing has these days. In the end I will make more money as I get lower prices, but still not nice to experience the pain going through it. Surely the bad news gets priced in at some point.
    29 May 2013, 11:55 AM Reply Like
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