These look like signals in gold to us, so we scaled in to a small position as we did in silver. We don’t have an excess of confidence in the trades, but the chart is the chart and these power bars are how rockets blast off. Of course some times they blow up before they gain orbit, but that is half the fun.
We bought silver too, and consider it an aggressive trade. As the horizontal lines indicate silver is entering heavy resistance territory. As always aggressive trades that work are confirmed later by less risky conservative trades, so traders might want to see a power bar or strength across the horizontal line before a commitment.
General market conditions continue schizoid — what do you expect when there are so many psychos running around in politician’s clothing? — Readers may look back on this period and congratulate themselves on watching with morbid fascination from the sidelines. The flag (?) we saw or thought we saw in the SPX (and bought) could be the jaws of a bull trap –not the first time we have had toes amputated by the market– but we will have to wait a few days to see.