Chart Of The Day 

See the June highs? Sun was pretty bright back then for this sector and theme, don't you think? I mean after all it was tagging trend channel resistance and you know how we feel about buying trend channel resistance or resistance in general right?

Right now when you look at the GLD chart you can clearly see we are on our way to where?

Support at the "Old resistance once broken to upside tends to become new support" line. This is also another reason why we like to prune and scale back whenever we see names that have already made moves of course which is exactly what we did with some of our gold holdings.

While I'm on the subject of gold, let's take a look at the "Most loved, most hated" gold stock of them all depending upon where you picked it up at. This issue on the other hand wasn't exactly at trend channel resistance but nonetheless part of the gold theme as well. As you'll see below it too started pulling back somewhat at the same time GLD did.  

Can't say the notes to guide you didn't guide you.

Those notes are exactly why we sold off a big piece of our gold related holdings and so should have you because the TREND CHANNELS I've been driving home to all of you over the months spoke loud and clear and told you all you needed to know IN ADVANCE of the recent swing down off the highs.

That's the power of using them and why I talk about them almost every day.

Now, that all said, I have a ton of names in this space that are setting up, not to mention other sectors and themes sporting similar patterns that we don't have to chase AFTER they have been running and run the risk of rolling over after a day or two of feel good.

It's just a matter of one being prepared in advance of a move vs having to chase a bus once it starts moving.