At that time I recommended that, "GOOS has reached an upside price target ($43) and looks extended with some bearish divergences. A close below $40 could mark a peak and a top reversal. I do not see a technical reason to go short but longs would probably be wise to reduce their positions and exit GOOS completely on a close below $40."
With GOOS trading around $58-$59 this morning another look at the charts is in order.
In this daily bar chart of GOOS, below, we can see that prices have tripled in less than a year. Prices have made a gap to the upside. It is not a breakaway gap and I have a hard time believing it could be a runaway or measuring gap so that just leaves us with a possible exhaustion gap.
Prices are well above both the rising 50-day and the rising 200-day averages.
The volume is heavy and the daily On-Balance-Volume (OBV) line has made a new high. The MACD oscillator is bullish.
In this weekly bar chart, below, we do not have today's price action but all the indicators are bullish.
In this Point and Figure chart of GOOS, below, we can see the straight up rally without the gap. Prices are extended and the computer program has not generated a new higher price target.
Bottom line: On June 7th I suggested that you reduce your long exposure. You took some profits and feel free to send me an email with your thoughts. It may have been smarter to hold those positions or even smarter to say "buy more" but that is not what I said.
Jesse Livermore, the famous trader, supposedly said to take profits when you benefit by an unexpected profitable event. Like not to look a gift horse in the mouth.
After living through a number of parabolic rallies in the commodity markets in the early 1970's I would recommend taking profits on remaining GOOS longs and standing aside for a while.