Thursday, May 21, 2009

Ambush - Barrick Gold Corporation (USA) (Public, NYSE:ABX)

ABX, from the WL set up a perfect ambush trade. What is an ambush? Hubert Senters of Trade the Markets, uses this setup on a regular basis with gold and futures.

Place fibs from PDL to PDH or from begininng to end of last leg. Price retraces between 50-62%. Ideally, price should not close beyond the 62% retracement level. Look for a reversal back to the base, and sell half.

POT gapped wide and printed WRB on huge volume. The second bar was bearish with no overlapping bodies and closed at base of the round $ number, so I went short as there was little or no chance of a retracement. Partial at gap support and whole $ level. Stopped out on balance. Late in the session POT head faked lower, filling the gap from Monday, and setting up a fast move (long) into the close.

5 comments:

JD said...

Hi Jamie:

I traded POT early (9:37 am. est.)on long and was stopped out. Now I know where is my mistake. Nice post! Keep up the good posting...

Jamie said...

Thanks JD,

The bears were emboldened by yesterday's shooting star. My guess is that a gap fade following a shooting star on the daily, has a lower success rate.

john said...

Nice trading. I had an ag short too, BG - rounding, ambush,
13:15 bar. It was cooking along nicely until that late day pop.

Interesting news day:
The bond masters of the universe are pissed off (at the gov't for effing with Chrysler bond holders?); Bill Gross' and his man Greenspan's tune changes today were none too subtle.

Jamie said...

John,

Nice setup on BG.

Interesting news day indeed. Also, hearing Russia is abandoning $USD as base currency in favor of the euro. The USD is in for a rough ride and gold is going to rally!

TraderLars said...

hubert senters... that guy is funny... you should watch the video's of him trying to tape read with time and sales... it sounds like a cattle auction... i love that guy

take care