Author Archive for: Alex - Chart Freak
Entries by Alex - Chart Freak
Weekend Update
Another week has come and gone, lets do a review and see what it may tell us we might expect going into the next week of trading.
That was a fast week of selling in the $SPX , wasn't it? : )
I had pointed out the first area of support last week and we already arrived there Friday...
The Forest or The Trees?
Have you ever heard the expression " Cant see the Forest through the Trees" or "Cant see the Forest For the Trees" ? Its about being so focused on 1 Tree ( Or 1 idea) that you cant see the big picture, the Forest . Its important for investors to see all things big and small , because it can affect the outcome along the way.
For example, we may see a nice set up in a stock. EBAY looks to be breaking out
EBAY just might be breaking out & take off from here, but stepping back and looking at the bigger picture helps us to see if we should be buying / waiting / or what?
The larger View
The Big Picture . Its important to your investing to know what you're looking at, each piece big and Small together. Why? Sometimes it can help us to be patient and wait for the best trade set ups, other times it gives us confidence that our trade ideas will have positive follow through or minimal downside risk. Both are important as we watch the movement in the markets unfold. Well, Today is Friday and not a whole lot has changed from the report yesterday, so I want to do a quick review and after today we can do a weekend report that may shed even more light on things.
Exercising Patience
In some situations, patience just doesn't just come naturally. We need to train ourselves to be patient. Here at Chartfreak, while looking at a few nice trade set ups here and there, we've really been waiting patiently for...
MESMERZING !
It gets mesmerizing & hypnotic if you stare at it too long. Yes, the picture above, but also the Metals and miners markets. I wanted to just pop in intra-day and address a few thoughts, I am getting some "Concerns" about Miners dropping even lower here. Yes, GDX is lower and Miners look weak, but in a drop to a daily cycle low...that is what fools everyone. Let me show you 3 charts that can help us to gain confidence.
Comfortable?
As Gold drifts around the lows of November, many wonder whether it means Metals are about to break through the bottom again and head for new lows, or break out higher? For many its hard to get really comfortable with the constant ebb and flow of the Metals , especially with the Dollar acting so strongly lately. We can look at some charts in the public section here and comment a little about whats been happening, but a Premium report just went out this weekend, so the review has to be limited, not taking away from those reading the premium version.
Gold hasn't broken down in a lasting manner from this channel, but its at the low end now and faces resistance above. (Click chart to open)
If you look at a long term chart of SILVER, it finds itself in a similar place ...
Comfortable- But Never Overly Relaxed
Right now I am comfortable with the present information indicating that we did see an ICL in Early November. It also appears that when we look at Gold and Miners, they have moved forward in what is likely going to be a "Right Translated" daily cycle. There is no way to KNOW this ahead of time, but what This means is that it "Peaks" its highest point in that Daily Cycle more than halfway through it. That also means that it will break to new highs once it has found its daily cycle low and reverses higher. So while I am comfortable that things are still lining up properly... I never like to get Overly Comfortable. The markets can do anything , so we stay alert . Lets examine what the Gold/ Silver/ Miners are looking like after last week, and then discuss a few other things.
Gold On Friday after the jobs report ended like this -
Notice this important fact about Gold ...
