…When To Hold ‘Em, Know When To Fold ‘Em

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Volatile markets and choppy sideways action, which way will the markets break? As daily cycles begin to age and the FOMC meeting approaches, it may be best to listen to the words of the gambler - You've got to know when to hold 'em, know when to fold 'em, know when to walk away, and know when to run - Kenny Rogers . I am scaling back on trades going into the FOMC meeting next week and wait for the fat pitch, the ICL in Precious Metals.

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SPX - DCL? Bear Flag? FOMC? The general markets are due timing wise for a dcl, but I'm looking for a  sign of strength.

spx-9-14 Read More

Hard To Hold

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The Tuesday report was discussing the recent volatility. Sideways chop is frustrating and newer positions are hard to hold, until you get a nice directional move. We are currently seeing strong volatility now. Lets take a look...

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SPX - The lows from Monday were not taken out, so that still could be a dcl, we just do not have confirmation.

SPX 9-13 Read More

Reversals, Volatility, and Trading

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When the markets get volatile, trading short term can be difficult for some. Buying low one day works out well, and then you may find yourself watching the gains evaporate in a quick drop. Friday was a quick drop and then Monday was a rip higher for the general markets, and Energy and Precious Metals are also a bit jumpy. Lets take a look and see what we can see in the charts.

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SPX - With Fridays drop, I said in the weekend report that many would want to go short, but WE are looking for a DCL almost immediately. Timing was late for a low, and that could be capitulation into a low. I mentioned obvious support areas for a reversal on this weekend chart.

SPX 9-9

This chart pointed out that a 1 week  sharp drop like we just saw could reverse and not have follow through  (red Arrows) .

SPX WKLY 9-9

SPX -  We got a fast reversal almost regaining all of the losses. Those going short Friday got burned. This may back off a bit and then surge higher through the 50sma in time.

SPX 9-12 Read More