Archive for August, 2012

Words from the wise

Posted on Aug 31, 2012 by .

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Occasionally as we thrash about the web we see articles that strike us as worth reading.  We could steal the content but we’d have to turn in our Eagle Scout badge.  So instead we’ll just record the link and let readers evaluate the content for themselves.

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Gold and silver break out. SPX turned back at resistance.

Posted on Aug 23, 2012 by .

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http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=1&mn=0&dy=0&id=p20970412253&a=255869372

Gold and silver (not illustrated here) have broken out and we are placing long trades in these instruments.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p70413847164&a=214966864

Meanwhile it appears that the SPX has been turned back at resistance.  The short term trendline from July is broken.  This is a minor matter for investors.  For traders it is a sign to hedge or take profits.  We are hedging part of our position.  Investors will be looking at the trendline from June and the Basing Point stops.

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Potential breakaway…

Posted on Aug 16, 2012 by .

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http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p70413847164&a=214966864

For 8 days the market has been eating the shorts’ lunch — in the most demoralizing way possible — a tiny bite at a time.  Today the market is taking a big bite out of their accounts.  And doing it in an emphatic fashion.  A close on the highs will take out the May 1 high of 1415.32 and will also take the air out of the bears.

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Risk on, risk off, Vix on, vix off, shell game continues

Posted on Aug 11, 2012 by .

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http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p82246327493&a=214966864

Just looking at this chart the trend analysis is simple and incontrovertible.  We have an upwave with 4 higher lows and 4 higher highs.  In each of the wavelets contrarians have attacked the wave but have not been able to break to a lower low.  The message is clear.  We should be long and looking to get longer.  We are not proud of the E trendline here.  if someone else put it up we might carp.  Maybe it was our evil twin Karnak who did it.  Nonetheless it’s there and it’s broken, as is the horizontal line.

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Can’t keep a good market down… pundits notwithstanding

Posted on Aug 06, 2012 by .

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We are in the process of watching a take no prisoners struggle for control of the market.  Last week the market was hammered by four days of hard selling — only to spring back like a jack-in-the-box on Friday.  Today we are getting some follow through.  In the face of Spain, Greece, the Olympics and Kim Kardishian this resilience is notable.

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