BGZ Stop was Hit - Stay Posted

After yesterday's late day surge in the market and this morning's advance thus far, the 64.75 suggested stop on BGZ was hit to exit the trade for a gain of 4%. It is nice to make a gain, but the goal I have right now is to make sure to catch any big move down which would lead to a much larger gain.

The short-term models are basically neutral right now, with the Nasdaq getting toward the overbought area. Because the intermediate term models are still at or near a bearish extreme, I want to get back in BGZ at any good opportunity. Due to the potential of a huge market move today after the House vote results, I may post later today and suggest another entry or instructions to enter BGZ.

Getting stopped out is part of trading both in limiting losses and locking in a profit. So on the recent trade we locked in a profit, but it is a beginners mistake to give up on a good set-up because you don't catch a big move the first trade, or second, or third....... In fact, the market has a way of getting as many people out of the game as possible before making a really big move. So be ready to jump on the next opportunity, even if the entry price is greater than 64.75.

For anyone who will be away from the computer all day, I would place a buy "stop" order at 72.00 for BGZ for today only.

That way if the House does not pass the bill, the market will probably fall extremely fast, and we will want to be back in the trade at that point. Otherwise, then next entry will be when the short-term models become overbought.