The only way to capitalize on the bear market in the retirement account is trading Bear ETFs. The one caveat when trading ETFs is liquidity. So today I wanted to trade gold (HGD on TSX) and energy (HED on TSX) weakness. Gold is weak because of the inverse relationship against a strong $USD. Energy is more complex but the the higher $USD doesn't help.HGD held the ORH as support on a closing basis and then it was just a matter of picking your spot.
In the trading account I shorted the real deal - AEM and ABX. My entry on ABX was a little pre-mature, but the stop held.
The energy play didn't work as well as gold, but still nicely profitable.
For gaps beyond the previous day's trading range, place the Fib. extension from the previous day high/low to the 15 minute ORH/L based on the the direction of the trade.
