If your a die hard trader, and I imagine you are if your reading this, there is nothing more exciting then what we saw in LTC the past week. It was like watching the long shot at the Kentucky Derby beat the 2-1 favorite. Not down the final stretch, but from turn one where it just ran away with the show leaving many in disbelief. If you read our blog yesterday, "LTC - Quietly Hot but have we reached the Top" we laid out what our plan of action was with this sleeper. Since the run LTC has taken the headlines. And with good reason, 40%+ in 5 days. We noted on the previous post that LTC was beating it's two bigger brothers, but today it crushed them. Here come all the analysts after the fact telling you it's time to take your money off the table, lock in profits and move on. This is your trade? We have mentioned that LTC is #3 on our list and gave reason it should be on yours. Today was that reason!!! LTC is not just a trading stock, it's a core holding in anyone's portfolio. Do we trade it? Of course we do, that's what we do, but remember we cannot take our eyes off the prize. We have a core position and trade around it, at this point we are sitting on a 1/4 trading position for essentially no money or very little cost per coin. We sold 50% of our trading at T1 and then half of the remainder this afternoon when it pulled back on the 5 minute bar after an epic run. We have options here now as the last 25% is essentially free. LTC is a Stud to say the least. Working with horses it was never more exciting to see a long shot become a triple crown winner. Ok I never saw one live, but today I just might own one. I marked three key levels on the chart above. Key level #1 means a retracement could happen, Level #2 it has happened, and level #3, get ready for a bull trap and it will be one you can buy and scalp the extension. But this horse may not be done running yet and hence the reason we did not sell completely out. Tomorrow we could wake up to see $100-$110, or maybe it does what it should have done yesterday and start the retracement. Only the market knows, but if your a trader, you have a bit of gambler in you, (as I do), your money should be on LTC can still run. But we must stick to the plan. Look for a pullback to the 0.382 retracement, this will let us know the race is over. But there is always late money feeding it is a bull trap, so I would not sell there I would wait for a double top, to close out the last 1/4 position. When you see a top stock run this hard this fast you sometimes just have to throw everything out the door and trade the trend.
Apologize not more graphs but we posted on this yesterday so this is a follow up. Please note wave 5 is normally equal to wave 1. When wave 5 is the longest of the three this means the equity is extremely bullish, Wave 5 is so long I want to look at my graphs again to insure this isn't a wave 3. My buddy Phil would actually add here, and may have as the trend is so strong as an upward trend is a friendly trend. He will squeeze another 3-5% out of it. Regardless trading the trend at this point is very dangerous you must keep your stops tight, and your limits tighter. retracements are going to be quick and we will be right back to the bull! There is never anything wrong with taking money off the table. JPM tells me that daily. If you have, good job you made money. But the point of this article, is that there are times to get out and times to string along the trade, recognizing them can be the difference between 30% and 45%. Like we posted previously there is nothing wrong cost averaging up in a bullish stock, but I will never question someone that sold at a profit either.
This race is not over and this Horse still has something to prove!! Good luck in the pits, I hope I wake up to $110.
Apologize not more graphs but we posted on this yesterday so this is a follow up. Please note wave 5 is normally equal to wave 1. When wave 5 is the longest of the three this means the equity is extremely bullish, Wave 5 is so long I want to look at my graphs again to insure this isn't a wave 3. My buddy Phil would actually add here, and may have as the trend is so strong as an upward trend is a friendly trend. He will squeeze another 3-5% out of it. Regardless trading the trend at this point is very dangerous you must keep your stops tight, and your limits tighter. retracements are going to be quick and we will be right back to the bull! There is never anything wrong with taking money off the table. JPM tells me that daily. If you have, good job you made money. But the point of this article, is that there are times to get out and times to string along the trade, recognizing them can be the difference between 30% and 45%. Like we posted previously there is nothing wrong cost averaging up in a bullish stock, but I will never question someone that sold at a profit either.
This race is not over and this Horse still has something to prove!! Good luck in the pits, I hope I wake up to $110.
Note
As we anticipated LTC seems to be forming a nice consolidation pattern between key level 1 and 3. We are looking for further consolidation to become less volatile in order to provide insight as to what may happen next. But This coin could continue to run with little notice which is why we kept 1/4 of our trading position. Once the pattern is confirmed we may add to the position or close out the last 1/4 position.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.