GDX And FCX

I noticed before the open yesterday morning that the GDX had validated the bottom of The Channel TWICE, and that it was perilously close to breaking twice validated support.

Given that the slope of that trendline rises at about thirty-four cents a day, any opening in the GDX yesterday that wasn't a Gap Up would be a technical violation of the trendline. I was interested in shorting it, although I forget if Scottrade will allow it, and was going to enter a "tester" order, but...



... the GDX opened on a Gap Down, below The Channel. Never mind.

We know that "Retests of broken support are common, and are to be expected," so I'll try to keep that broken trendline in the GDX on the radar. It comes in today, September 16, at 63.6875.



In FCX, The Bulls tried to overcome the 42.24-42.27 resistance that we discussed yesterday by throwing the "long bomb," with a Gap Up opening to the 42.48 yard line, the short-term result of which was a signature "Gap And Crap" opening. UGH.

That play got called back to the line of scrimmage (a full retracement of the gap from the prior day's close) and then some penalty yardage tacked on to that for attempting to bully their way through resistance. LOL.

The Bulls needed to establish the running game (solid chart structure), and they did.



Coming off the morning lows, The Bulls climbed steadily higher, put in this Triangle, the LOWS of which were in the 42.24-42.27 resistance area, then broke out of it and headed for the opening high of 42.64, which went IN PLAY off the pattern's measured move.

Before going for that score, however, The Bulls did the smart thing and came back to retest the top of the Triangle, to validate it as support. Lovely. I bought 5,000 shares of FCX at 42.41.



Coming off the trendline validation of support at the top of the Triangle, The Bulls formed and broke out of another triangle (in orange), which also put a retest of the morning high of 42.64 IN PLAY. Alright ... Go Bulls!!!

Normally, I like to "take profits, or at least 'some' profits, when targets get MADE." If there had been only one pattern breakout, I would have cashed it in when the 42.64 target got MADE. I considered selling half of my position, but I liked The Bulls' game plan execution so well, I held all of the shares for a possible late day gap-filling rally toward...



... the 44.00 gap, fueled by the breakouts and some possible short-covering. I raised my stop to "anything that was back in my face," below 42.48-42.49 horizontal support.



CURSES!!! The rally rolled over and died.

The top of the orange triangle, 42.58, wasn't support (top yellow line).

42.48-42.49 horizontal support (bottom yellow line) wasn't support.

The stock was back in my face. Wimpy Bulls! I threw it in on the break of 42.48-42.49 horizontal support. UGH.

Have I mentioned, "Take profits, or at least 'some' profits, when targets get MADE?" LOL. Serves me right. I "shoulda" sold half of my position when the 42.64 target got MADE, but I got greedy. I should slap myself for that.

Slap! Slap! SLAP!!!

Ouch! Ouch! OUCH!!!!



The session finished with The Bulls finding support at the 42.35 low of the orange Triangle (the late afternoon low was 42.36).



Pitiful gain: $150