Trading RM, LLC.

Yesterday gold popped on everyone's radar wtih the commodity extending higher on strong volume (approximately 3X its previous 10 days). As a sector, the gold miners were the strongest group on the board. It's key to remember that while yesterday caught everyone by surprise, it does not necessarily mean that the entire move was over at day's end. Today is the second day, and while the trade has not been as clear cut as yesterday, certain patterns have repeated themselves. Recognizing these patterns and being able to take advantage of them provided opportunities to generate some profits.


Below are 5 minute charts for Newmont Mining (NEM) for 9/2 and 9/3. You will see that on both days the stock made early highs, sold off around 9AM (CST), held the level, and proceeded to rally to new intra day highs.
Being aware of the way a stock (or even a sector) trades, can put us short term traders in a position to capitalize on what we have seen before in the past (sometimes as recently as the previous day).