I’ve established a tracking position of 400 shares with a cost basis of 10.00. As is my custom, I only track trades when two or more subscribers report having done them based on my guidance, and I typically use the worst price reported. I have always followed this policy because I never wanted to be just another self-promoting guru whose supposed track record consistently outshone that of his subscribers. In this instance, many of you reported jumping on the 10.15 correction target I posted here in late April. I’d suggested a 9.99 stop-loss that worked when HDGE bottomed at 10.03. Partial profit-taking on the initial leap from the lows allowed subscribers to reduce their cost basis to 10.00 or lower. We are in this trade for the long haul. Although the odds will never be with us trying to get short at the Mother of All Tops in a bull market that has been blithely chugging along for more than seven years, it is already evident that we have in fact caught an important top. _______ UPDATE (May 22, 1:09 a.m.): HDGE came down hard on Friday, but not before refreshing the bullish impulsiveness of the hourly chart by exceeding a small but important peak at 11.11 recorded on 3/29 (see inset, a new graph). This generated an impulse leg that makes the current downtrend corrective and therefore a potential buying opportunity. I’ve sketched a ‘counterintuitive’ set-up for getting long if this vehicle moves according to plan. I’ll add 400 shares to our position if any subscribers do the trade and it goes in-the-black.
