GOLD, A Case Study Swing Trade

The Hit & Run Report may sound like it’s tailored for just the day trader.

However, we focus on swing trades and position trades as much as day trades.

Big patterns mean big swing setups.

Let’s take a look a GOLD (Barrick Mining).

The following chart is a daily GOLD.

It came out of a Stein & Handle pattern (a cousin to the Cup & Handle) in early April.

We alerted members on the Hit & Run private Twitter feed to go long on a swing, getting filled at 22.35.

In keeping with our methodology to sell half and let the market talk with the balance, we locked in a gain of 2.09 on the 1st piece.

On Tuesday, May 5, we sold the second piece for a gain of 5.44.

Why did we sell the 2nd piece?

Notice that GOLD left a signal reversal bar, a Lizard sell signal, on 4/23.

A Lizard sell is a new 10 day high Topping Tail… the open and close are near the bottom of the session after a intraday runup indicating some distribution.

GOLD pulled back over the next week and turned up to test the April highs on Tuesday.

Additionally, GOLD was due to report on Wednesday, so we sold the balance of our long.

At the same time, we sold the balance of our May 25 calls taken last month at a cost basis of 2.01.

The first tranche of the call position was sold at 3.65.

We got 2.06 for the second half.

The moral of the story is, it’s easy to get into a position. Everybody has a strategy to get long.

It’s an art getting out with a big win.

In this game, it’s not important how much your positions are up, what counts is what you keep, what you realize.

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