Trade Plan for 11/26

Profit Taking Day

The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to The Week Ahead

I did a post on trading true gaps yesterday and it proved quite relevant today as we saw a massive true gap up today. I will rarely chase a long on such a large gap up, but this doesn’t mean that I will automatically short it. Here is how the levels performed from the general rules on true gaps. We can see how the tone changed once 6026.75 was offered from below.

The link to the video can be found here: Trading TRUE Gaps

Today was profit taking day for me and quite clearly much of the rest of the market. We took profits on:

TMF 0.00%↑ ENPH 0.00%↑ GOOGL 0.00%↑ ALIT 0.00%↑ and ALB 0.00%↑

I had done a post on precious metals over the weekend as well. We were expecting a stall on Gold at major supply which might offer a dip buy opportunity. Supply was certainly reactive and the news of a cease fire during premarket led to a much larger liquidation. It may take some time for gold to find its feet, but I expect this positioning wash out will ultimately lead to a buying opportunity.