Archive for May, 2011

An unmemorable week for Memorial Day.

Posted on May 29, 2011 by .

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The silver and gold markets appear to have stabilized and to be buyable.  We’re not wild about the abg-z pattern, but such as it is it seems positive for reestablishing positions — or even for adding on.  The reason we’re not wild about it is the weakness of the beta wavelet, and the resulting sharply angled downtrend line.

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End of world doesn’t happen. Except for Dow and Euro.

Posted on May 23, 2011 by .

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Here’s the long and the short of it.  Top chart, market since March 09 showing the long term trendline.  As we see in the lower chart the short term trendline is broken and price is flirting with the long term trendline.  This is no casual flirtation.  It is more like Dominique Straus-Kahn about to do violence to an unsuspecting market.  (or very nervous market)

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INDU. State of the market.

Posted on May 21, 2011 by .

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Five years of the Dow.  And everyone and his dog (of the Dow) is anxiously asking what’s next (?).  Well, what is next?  First of all a trend this powerful and long is not reversed by a few talking heads and pundits carrying end of the world as we know it signs.  As an example of how wrong they can be, is the rapture occurring in your neighborhood today?  There.  Of course that guy with the sign will be right one of these days.  But not today.

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GLD. Time to speculate?

Posted on May 20, 2011 by .

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Today’s power bar has lured us into a trade on gold.  This is speculative territory.  While the bar is outside the downtrend line the pattern is not by any means a perfect alpha-beta-gamma pattern, and more prudent traders and investors will wait until the horizontal line is pierced on strength.  And even more prudent traders will wait till a new high is made.

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Bonds go North. Stocks go South. We go to the Giants game.

Posted on May 17, 2011 by .

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To start with we don’t like the way things are shaping up here.  A minor trendline just broken in the INDU — in fact two broken, the horizontal and the sloped.  From a trading point of view we are exiting our positions in the indices.  We think investors should begin thinking of hedging.  You can hedge in units, or partially — for example, 1/3, 1/3, 1/3 — or similar.

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