One of the advantages of making trades very close to stop loss points (as we did yesterday) is, obviously, minimal loss if the trade crosses the stop point. The disadvantage is that this can happen very quickly if a market is ready to turn in one direction or the other.
The DOW, S&P 500, and NASDAQ all made new highs today (the DOW finally broke above 26,487- it's high from April 5) so our bearish divergence signal is gone and our stop loss parameter broken. We now need to cover the short position we entered yesterday (and wait for the next potential top). Unloading my short position in the broad stock market today.
Gold prices dropped today and crashed our stop loss level of $1280. Silver also dropped this morning, but not as severely, and it is currently slightly above yesterday's closing price. Nevertheless, we need to sell both metals now (some loss with gold but should be little or no loss in silver) because gold is possibly moving below the start of its new medium-term cycle (which could be from its low either March 7 or April 4) which would mean it is turning bearish.
I am selling both gold and silver positions today.
Our crude oil short trade is still valid as crude prices are still below our stop loss of $65.50 (May contract chart). There is one day left in the current reversal zone for crude. We don't want to see prices exceed $64.77 after Wednesday. That would be a bearish warning even before breaking our stop loss. Let's hold this short position for now. There are still a few short-term indicators suggesting a correction now.
I apologize for this abrupt change in trading positions. I am not usually a day trader so this rarely happens, but it can come about when placing trades close to stop loss points (which is actually an ideal reward/risk scenario that minimizes potential loss).