Author Archive for: Alex - Chart Freak
Entries by Alex - Chart Freak
The Gold Bull Market – Is it time yet?
The Gold Bull Market
Do you think the Gold Bull Market has returned? Obviously I do, and have been trading as if the Gold Bull Market has returned. You need to be aware of this opportunity and appreciate that another big move in this Gold Bull Market is again developing. If this next move is anything like the moves seen during past Gold Bull Market's, then you will not want to miss the next buying entry after this current correction winds down.
I was able to successfully guide Chart Freak members through the recent 100% rally in gold miners when we bought the lows back in the middle of January. Those gains were exceptional, to say the least. In some cases, junior miners rose up by 500% off the lows, and are now consolidating those gains in preparation for the next leg higher.
My recent weekend report (premium version) took a deeper look at Gold's recent correction and how the current action in the US Dollar may impact the precious metals market. However, it is again time to start paying closer attention to the Precious Metals markets, because after-all this is a Gold Bull Market. Let me take you through some of the premium content I shared recently and review what I believe is occurring.
Gold Weekly
Gold has finally started that correction, as seen on this weekly chart.
June 2- Patiently Waiting
Many readers here like to trade daily, attempting to scalp some short term gains or trying to grab a small run. Others may be patiently waiting in cash for a longer term run, like we saw in Miners from Mid January through April? Like the Bear in the theme picture patiently waiting for a salmon run, they soon should be rewarded. After a market review, let's discuss what is involved in that waiting period.
,
SPX- We still see our bullish set up and even got a reversal Wednesday after an early sell off.
Technical Difficulties
To start with, I know many followed me on this trade, since it was pointed out a few times as low risk above the 200sma and very oversold. You should not have been stopped out with price holding the 200sma, as part of the trading plan.
.
CLF - May 23 - Low risk entry above the 200sma, stop loosely below the 200sma.
May 25- A trend line was also acting as support and the MACD was correcting itself.
CLF May 31 - Sweet, up 40% more today.
Trust Issues
Let's get right into the weekend report, and I will discuss all of the sectors and why I chose trust issues as a theme.
.
SPX- Last weekend I had been discussing the expected rally and the potential that it has to be strong since price is near the highs, but the signals that I was getting was saying that it was near term lows ( DCL). Since the markets did form a pattern known as H&S, I used this as one of my charts showing that we were at lows, not highs on a weekly. Would we have a strong week?
May 19 - I saw the H&S too, but I had trust issues with it playing out, because many other factors were calling for a rally.
SPX WKLY - That was a strong break higher and the SPX is actually heading to the May 2015 all time highs. If it breaks out from there? I have prepared charts for that time already 🙂 It could get very bullish , apparently climbing a wall of worry, because all I hear is negative talk.
May 27th – 3 Day Weekend In The U.S.
Not much has changed from Thursdays report. Janet Yellen speaks today and she possibly could shake things up with some dovish or hawkish talk, so we'll see how that goes. And then all then traders in the U.S. will have a 3 day weekend to think about it. 
.
If you are heavily invested and you'd rather not think about it on your weekend off, you may want to lighten up.
From Break Through To Follow Through
Yesterdays report discussed some break outs that were taking place in various sectors. Wednesday, we saw some follow through in those areas too. Just like a baseball player at the plate, when we get a decent pitch tossed our way, we also need to follow through to be able to possibly score. Some may wait for a pullback or start a small position and add on a pullback later, since it is early in some set ups. Lets review.
.
SPX - This is the follow through that we expected. We are only on Day 5 today, of a daily cycle that can last over 30 days.
Market Turning Points And Trading
Market Turning Points And Trading
In a recent premium report, I reviewed interesting Market turning points that are showing up across various sectors. I'd like to share some of that with you now. Please note that most of this information was released in the weekend report of May 21st or within previous reports.
S&P 500 - SPX - We see a mild pullback in the General Markets after a strong rally. Not even a 38.2% retrace yet. Many advisors were becoming very bearish and pointing to a possible H&S pattern, with a big drop to come. I see that H&S pattern, but they often fail, as I was more focused on a few other areas that indicated the markets were going to break out higher, not lower.
Break Through
Tuesday was a Break Through in a several ways. Let's take a look.
.
SPX - From the weekend report. For many reasons, we were waiting for a break out higher ( not lower like many other analysts).
SPX Tuesday- We see a Break through. This is Bullish. Today is only day 3 of the 2nd daily cycle, following a R.T. Daily cycle. That means that we could really see this move higher over time. Picture this : Many were shorting what appeared to be a H&S, and they may now start covering and cause a buying reaction.
And the NASDAQ?
Setting Up
We didn't really see a whole lot of change on Monday, but as mentioned in the weekend report, some areas could be setting up. Some setting up for a run higher, others setting up for a fall. To the charts...
.
SPX - No follow through yet, but I am expecting higher prices soon.
