Sells most of GNC at $21.50.
I am becoming increasingly nervous about the markets ability to hold on or above the 18000 level. For this reason reason I am trimming severely or just plain closing all current positions.
We are long overdue for a major correction and the upcoming presidential election could well be the catalyst that precipitates it.
If this correction occurs I expect the DOW to drop to the 9700 to 10700 area.
If you are trading a retirement account I would (and have) get out of the market and sit this one out. It could take a 18 to 24 months for this to play out so be patient.
I will limit my trading primarily to day trades until we get some clarity on market direction.
This called a price action trade.
There was a small gap down this morning, a nickel, which was followed by a $1.50 drop in the first 5 minutes. Certainly a panic price movement.
My first buy at $67.11 was set up before the market opened. The additional buy at $66.76 was entered after I felt the selloff was over.
I sold half of this position at $68.24 for 67 cents to reduce my position size because DG broke support at $67.14 which indicates DG could go lower.
Next support levels are $64.90 (minor), $62.50 (minor) and $60.02, which is major support.
DG has been sold to Dollar Tree for $74.50.
As you know I bought DG 3 weeks ago at $70.11. At the time I mentioned that i had been waiting for it to hit $67.14 but it bounced off $70.00 4 or 5 times.
Today it hit $67.00 and bottomed out at $66.50. I bought at $67.16 and $66.76 and am now in at $67.57.
When I entered this trade new this was a distinct possibility and structured the trade accordingly.