Wednesday, August 5, 2009

Nice gain on DAG but don't hesitate to TMAR if the "DAwG" starts to bite here

DAG has been a nice long play since we picked up on it about 10 days ago. Raymond Merriman suggested going long corn and similar could be good for 2-5 weeks. Well, it tested back to its 50 dma today on higher selling volume. If if pushes lower under that, don't hesitate to Take Money and Run (TMAR). Later if it rises above thus recent swing low, okay, look for another leg up. But we don't have a guarantee it doesn't have new lows to test. So if this DAwG starts to "bite" by losing this support, don't feel you've got to stay in, and don't let it become a loss.

Then again if it keeps support at the 50-day moving average, then we may get some more run. I'm just saying, here's the time to be alert with it! This includes KI$$ traders of course.

(If we want to short this sector, there's AGA which is inverse, but first I'd prefer to do the chart analysis. Nimble traders who feel confident can at least know these 2 ETFs as ways to take either side.)

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