It is almost that simple. Losses and drawdown periods are inevitable in this game, but success means developing systems for cutting them short and killing them off while allowing the winners exponential room to move in the direction of the trade.
3/31/11
Kill Losses
The secret to successful trading - killing losses.
It is almost that simple. Losses and drawdown periods are inevitable in this game, but success means developing systems for cutting them short and killing them off while allowing the winners exponential room to move in the direction of the trade.
It is almost that simple. Losses and drawdown periods are inevitable in this game, but success means developing systems for cutting them short and killing them off while allowing the winners exponential room to move in the direction of the trade.
3/30/11
Technical Analysis - S&P 500 3/30/11
Charts are expandable in most browsers.
Basic Trend
I've redrawn the parallel trend lines to better respect recent market action. A long term (weeks to months) upwards price trend in the S&P 500 index remains intact.
The intermediate term price trend recently broke down as was suggested as a possibility in the March 3rd post. A new downtrend seemed to be emerging, but then prices broke out of that trend as well.
Depending on how you use the information this action provides, you would either be long or neutral the S&P 500 index right now. We definitely closed shorts that were initiated as per the anticipation and follow through mentioned in the March 3rd post.
Moving average envelopes are in uptrend mode across the board.
Relative Strength Index (RSI) indicators are also in uptrend range on all three charts.
Interestingly enough, the Dynamic Trailing Stop (DTS) indicator is in downtrend mode on the weekly chart, while being in uptrend mode on the daily bar chart. Neutral trend?
The Directional Movement Index / Average Directional Index (DMI / ADX) indicates non-trending price action on both the weekly and daily bar charts.
Elliott Wave
Based on our top Elliott Wave interpretation, we do not think the stock market is a good buy for long term investors right now.
Sentiment
VIX:
Although the recent downside action did produce a small spike, the Volatility Index (VIX) is still near complacent levels.
Put/Call Ratio:
Like the VIX, the Put/Call ratio spiked a bit with the recent downside action, but has quickly come back down to neutral levels.
Intermediate Term:
Neutral
Short Term:
Our semi-automated short term trading is currently taking trades to the long side, but this can change more frequently than blog posts.
Basic Trend
I've redrawn the parallel trend lines to better respect recent market action. A long term (weeks to months) upwards price trend in the S&P 500 index remains intact.
The intermediate term price trend recently broke down as was suggested as a possibility in the March 3rd post. A new downtrend seemed to be emerging, but then prices broke out of that trend as well.
Depending on how you use the information this action provides, you would either be long or neutral the S&P 500 index right now. We definitely closed shorts that were initiated as per the anticipation and follow through mentioned in the March 3rd post.
Moving average envelopes are in uptrend mode across the board.
Relative Strength Index (RSI) indicators are also in uptrend range on all three charts.
Interestingly enough, the Dynamic Trailing Stop (DTS) indicator is in downtrend mode on the weekly chart, while being in uptrend mode on the daily bar chart. Neutral trend?
The Directional Movement Index / Average Directional Index (DMI / ADX) indicates non-trending price action on both the weekly and daily bar charts.
Elliott Wave
Based on our top Elliott Wave interpretation, we do not think the stock market is a good buy for long term investors right now.
Sentiment
VIX:
Although the recent downside action did produce a small spike, the Volatility Index (VIX) is still near complacent levels.
Put/Call Ratio:
Like the VIX, the Put/Call ratio spiked a bit with the recent downside action, but has quickly come back down to neutral levels.
Current Stance
Long Term:
Sell any existing long positions and move to cash. Intermediate Term:
Neutral
Short Term:
Our semi-automated short term trading is currently taking trades to the long side, but this can change more frequently than blog posts.
3/29/11
Atlas Shrugged Part 1
After less than frequent posts for a couple of weeks, I am getting geared up to resume regular weekly market posts and charts. Most of this will have to wait till next week though, because I am leaving town again.
Another thing I am looking forward to is seeing Atlas Shrugged Part 1. Appropriately, Atlas Shrugged opens in theaters on April, 15th, infamously known as the annual deadline for filing personal income taxes.
I read the book many years ago, and, while not agreeing with Ayn Rand on everything, I can say it was useful in helping me develop what ultimately can be called a libertarian (not necessarily the libertarian party) political philosophy.
I hope they have done a good job portraying the book, and I definitely hope Part 1 leads to other parts which will complete the story.
A new acquaintance once said to me: "How Francisco d'Anconia of you" after one of our early conversations. With that comment I was excited to have discovered the first individual I knew personally who had also read Atlas Shrugged.
Here is Francisco's voice mail released from the movie's website:
http://www.atlasshruggedpart1.com/
Another thing I am looking forward to is seeing Atlas Shrugged Part 1. Appropriately, Atlas Shrugged opens in theaters on April, 15th, infamously known as the annual deadline for filing personal income taxes.
I read the book many years ago, and, while not agreeing with Ayn Rand on everything, I can say it was useful in helping me develop what ultimately can be called a libertarian (not necessarily the libertarian party) political philosophy.
I hope they have done a good job portraying the book, and I definitely hope Part 1 leads to other parts which will complete the story.
A new acquaintance once said to me: "How Francisco d'Anconia of you" after one of our early conversations. With that comment I was excited to have discovered the first individual I knew personally who had also read Atlas Shrugged.
Here is Francisco's voice mail released from the movie's website:
http://www.atlasshruggedpart1.com/
3/24/11
Technical Analysis - Gold 3/24/11
Charts are expandable in most browsers.
Gold's long term uptrend remains intact.
Recently the intermediate term price trend in gold broke down and caused us to go ahead and harvest some profits from our intermediate term trading. Now the yellow metal has broken out again. Trend lines have been redrawn to respect the current trend.
We are just as willing to sell short a downtrend on the intermediate term as we are to buy an uptrend, but right now the intermediate term uptrend is also intact.
Weekly and daily moving average envelope charts are in uptrend mode. The short term 60-min moving average envelope is in downtrend mode. These are built by using an average of both the highs and lows in two respective lines, and then building an average of the close in a faster line.
Although a slight divergence is present on the weekly and daily charts, the Relative Strength Index (RSI) is in uptrend mode on the long term and intermediate term charts.
Weekly DTS remains in uptrend mode, and the daily Dynamic Trailing Stop has now reentered uptrend mode. As has been mentioned before, the DTS is useful for protecting profits and cutting losses short. It is similar to the proprietary heuristics we use in our short-term trading system.
The Directional Movement Index / Average Directional Index (DMI / ADX) is technically in uptrend mode on the weekly chart, but is showing some possible signs of weakness. These may clear up, if buyers continue to remain stronger than sellers. DMI / ADX is actually neutral on the daily chart right now.
Current Stance
Long Term:
Hold a core position
Intermediate Term:
Hold
-maximum stop loss is at 1386.70, but we will also be respecting the current and developing trendlines.
You may notice that we do not really talk about geopolitics or external economic indicators in our work. We keep it simple and tactical by simply following price action and trend.
Gold's long term uptrend remains intact.
Recently the intermediate term price trend in gold broke down and caused us to go ahead and harvest some profits from our intermediate term trading. Now the yellow metal has broken out again. Trend lines have been redrawn to respect the current trend.
We are just as willing to sell short a downtrend on the intermediate term as we are to buy an uptrend, but right now the intermediate term uptrend is also intact.
Weekly and daily moving average envelope charts are in uptrend mode. The short term 60-min moving average envelope is in downtrend mode. These are built by using an average of both the highs and lows in two respective lines, and then building an average of the close in a faster line.
Although a slight divergence is present on the weekly and daily charts, the Relative Strength Index (RSI) is in uptrend mode on the long term and intermediate term charts.
Weekly DTS remains in uptrend mode, and the daily Dynamic Trailing Stop has now reentered uptrend mode. As has been mentioned before, the DTS is useful for protecting profits and cutting losses short. It is similar to the proprietary heuristics we use in our short-term trading system.
The Directional Movement Index / Average Directional Index (DMI / ADX) is technically in uptrend mode on the weekly chart, but is showing some possible signs of weakness. These may clear up, if buyers continue to remain stronger than sellers. DMI / ADX is actually neutral on the daily chart right now.
Current Stance
Long Term:
Hold a core position
Intermediate Term:
Hold
-maximum stop loss is at 1386.70, but we will also be respecting the current and developing trendlines.
You may notice that we do not really talk about geopolitics or external economic indicators in our work. We keep it simple and tactical by simply following price action and trend.
Technical Analysis - EURO 3/24/11
Charts are expandable in most browsers.
Sometimes price patterns take what seems like a long while to resolve on way or the other. Distribution is the word the comes to mind when I look at the pattern above. Since it has not resolved itself, I will just have to wait and see. We will be waiting in a different currency though.
While there may be a legitimate intermediate term uptrend underway right now, we are avoiding long (buy) trades in this market right now based on the broader pattern shown on the weekly chart.
We interpret the current pattern in the EURO as long term bearish as per the Elliott Wave Principle. Before trying to exploit this pattern, we are watching for more confirmation from price action. A break below 1.285 would indicate wave-3 of (3) of [3] as being possibly underway. A break above 1.4266 would negate the idea that wave (2) of [3] is already in place, but would not negate the idea that wave [2] is in place.
Current Stance
Long Term:
Sell
Intermediate Term:
Neutral
Sometimes price patterns take what seems like a long while to resolve on way or the other. Distribution is the word the comes to mind when I look at the pattern above. Since it has not resolved itself, I will just have to wait and see. We will be waiting in a different currency though.
While there may be a legitimate intermediate term uptrend underway right now, we are avoiding long (buy) trades in this market right now based on the broader pattern shown on the weekly chart.
We interpret the current pattern in the EURO as long term bearish as per the Elliott Wave Principle. Before trying to exploit this pattern, we are watching for more confirmation from price action. A break below 1.285 would indicate wave-3 of (3) of [3] as being possibly underway. A break above 1.4266 would negate the idea that wave (2) of [3] is already in place, but would not negate the idea that wave [2] is in place.
Current Stance
Long Term:
Sell
Intermediate Term:
Neutral
3/23/11
Technical Analysis - Swiss Franc 3/23/11
Charts are expandable in most browsers.
The Swiss Franc's uptrend persists. We could perhaps find it easy to speculate as to why, but following the price trend is really the only thing that matters in the end.
For more active trading, we use daily bar charts to show us the intermediate term activity. The intermediate term uptrend for the Swiss Franc also remains intact for now.
Current Stance
Long Term:
Hold
Intermediate Term:
Hold
The Swiss Franc's uptrend persists. We could perhaps find it easy to speculate as to why, but following the price trend is really the only thing that matters in the end.
For more active trading, we use daily bar charts to show us the intermediate term activity. The intermediate term uptrend for the Swiss Franc also remains intact for now.
Current Stance
Long Term:
Hold
Intermediate Term:
Hold
Technical Analysis - Silver 3/23/11
As many of you know, I've been out of town and trading off a skeleton system, which, along with other responsibilities has limited my posting recently. Well, I've stopped back in to my Nashville residence before leaving town again. That means I can put up some charts and comments.
Charts are expandable in most browsers.
Clearly, the long term uptrend in silver remains intact.
In our last post on silver, we had moved stops on intermediate term long (buy) positions up to 34.290 in order to protect and lock in profits should the market start moving against us. That level was hit, causing us to take profits. Then the market's intermediate term uptrend reemerged and broke to new highs.
We use different time frames to help us analyze different degrees of price trend. Weekly chart are are go to for long term trend; daily bar charts for the intermediate, and 60-min for basic short term.
All three time frames show moving average envelopes in uptrend mode right now.
The Relative Strength Index (RSI) indicator is also in uptrend mode on all three degrees of trend.
The Dynamic Trailing Stop (DTS), seen laid over the actual price charts, is in uptrend mode on both the weekly and daily charts. DTS can be an effective tool for cutting losses short and locking in profits.
More confirming evidence comes from the Directional Movement Index / Average Directional Index (DMI / ADX), which is in uptrend mode on the weekly bar chart, and is more positive than it is negative or neutral on the daily bar chart.
Current Stance
Long Term:
Hold
Intermediate Term:
Long
-current stop at 36.150
Charts are expandable in most browsers.
Clearly, the long term uptrend in silver remains intact.
In our last post on silver, we had moved stops on intermediate term long (buy) positions up to 34.290 in order to protect and lock in profits should the market start moving against us. That level was hit, causing us to take profits. Then the market's intermediate term uptrend reemerged and broke to new highs.
We use different time frames to help us analyze different degrees of price trend. Weekly chart are are go to for long term trend; daily bar charts for the intermediate, and 60-min for basic short term.
All three time frames show moving average envelopes in uptrend mode right now.
The Relative Strength Index (RSI) indicator is also in uptrend mode on all three degrees of trend.
The Dynamic Trailing Stop (DTS), seen laid over the actual price charts, is in uptrend mode on both the weekly and daily charts. DTS can be an effective tool for cutting losses short and locking in profits.
More confirming evidence comes from the Directional Movement Index / Average Directional Index (DMI / ADX), which is in uptrend mode on the weekly bar chart, and is more positive than it is negative or neutral on the daily bar chart.
Current Stance
Long Term:
Hold
Intermediate Term:
Long
-current stop at 36.150
3/17/11
Get Your Commodity Analysis Here
EWI's FreeWeek is Here! Get full FREE access to Elliott Wave International's most popular commodity forecasting service, edited by Senior Analyst and trading instructor Jeffrey Kennedy. Now through noon (Eastern Time) March 23, you get the hottest daily, weekly and monthly commodity opportunities, complete coverage of up to 18 markets through video analysis and clearly labeled charts, plus practical real-world trader lessons, tips, tricks and more! Access FreeWeek now!
3/16/11
S&P 500 - My Thoughts
In the past few days I have recieved a few e-mails from friends asking my thoughts on the S&P 500. They know this is my main trade.
As mentioned in my most recent post, I am running trading operations from a remote location and on a skeleton system. Although I am manageing any open trades and new signals, I have not rebuilt all the charts I normally post. Not having my normal charts and having other responsibilities have led to light blog posting. But that does not mean I have not communicated what I think of the S&P 500.
My thoughts on the S&P are still summed up by the S&P 500 post on March 3rd.
As mentioned in my most recent post, I am running trading operations from a remote location and on a skeleton system. Although I am manageing any open trades and new signals, I have not rebuilt all the charts I normally post. Not having my normal charts and having other responsibilities have led to light blog posting. But that does not mean I have not communicated what I think of the S&P 500.
My thoughts on the S&P are still summed up by the S&P 500 post on March 3rd.
3/13/11
The Least Imprtant Trading Component
I am working remotely and trading on a skeleton system right now. I have not rebuilt or transferred all the charts that I often post. So don't be suprised by less frequent chart posts for the time being. But how important is trade identificaiton anyway?
To answer that question, I will quote from "Diary of a Professional Commodity Trader", by Peter L. Brandt:
To answer that question, I will quote from "Diary of a Professional Commodity Trader", by Peter L. Brandt:
"Trade identification is the least important of all trading components. The trading process itself and risk management are much more crucial components to overall success in trading operations. No two successful traders select trades in exactly the same way...."
3/9/11
Technical Analysis - EURO 3/9/11
Charts are expandable in most browsers.
Charts for this post were taken during market hours on the day of the post, so they will not reflect the actual closing prices of that market session.
Basic Trend
We typically stay out of price patterns like the pattern in EURO futures shown above until they resolve themselves either up or down.
I could see where a trader could justify holding a long position as an intermediate term trade in EURO futures right now, but our longer term bearish bias on the EURO has us avoiding such signals right now.
Our moving average envelopes are currently positive on all three time frames.
The Relative Strength Index (RSI) is in uptrend range on the weekly and daily bar chart, while being more neutral on the 60-min chart.
Dynamic Trailing Stop (DTS) is in uptrend mode on both the weekly and daily bar charts. The Directional Movement Index / Average Directional Index (DMI / ADX) is showing uptrending action on both charts as well.
Elliott Wave
Our current interpretation of the Elliott Wave pattern in EURO futures continues to be long term bearish. We are waiting for more confirmation from price trend before we reenter speculative positions on the short side of this market. At the same time, we do not want to own EURO notes in any longer term cash note storage plans. A break below 1.287 would indicate wave-3 of (3) of [3] as being possibly underway. A break above 1.4266 would negate the idea that wave (2) of [3] is already in place, but would not negate the idea that wave [2] is in place.
Current Stance
Long Term:
Sell
Intermediate Term:
Neutral
Charts for this post were taken during market hours on the day of the post, so they will not reflect the actual closing prices of that market session.
Basic Trend
We typically stay out of price patterns like the pattern in EURO futures shown above until they resolve themselves either up or down.
I could see where a trader could justify holding a long position as an intermediate term trade in EURO futures right now, but our longer term bearish bias on the EURO has us avoiding such signals right now.
Our moving average envelopes are currently positive on all three time frames.
The Relative Strength Index (RSI) is in uptrend range on the weekly and daily bar chart, while being more neutral on the 60-min chart.
Dynamic Trailing Stop (DTS) is in uptrend mode on both the weekly and daily bar charts. The Directional Movement Index / Average Directional Index (DMI / ADX) is showing uptrending action on both charts as well.
Elliott Wave
Our current interpretation of the Elliott Wave pattern in EURO futures continues to be long term bearish. We are waiting for more confirmation from price trend before we reenter speculative positions on the short side of this market. At the same time, we do not want to own EURO notes in any longer term cash note storage plans. A break below 1.287 would indicate wave-3 of (3) of [3] as being possibly underway. A break above 1.4266 would negate the idea that wave (2) of [3] is already in place, but would not negate the idea that wave [2] is in place.
Current Stance
Long Term:
Sell
Intermediate Term:
Neutral
3/8/11
Big Advantages of Trading with the Wave Principle, Plus: Discover Where to Place "Protective Stops"
By Elliott Wave International
What advantages does the Wave Principle offer to traders?
Here's one of the big advantages of using the Wave Principle when trading: you can increase your understanding of how current price action relates to the market's larger trend.
Other tools fall short in this regard. Several trend-following indicators such as oscillators and sentiment measures have their strong points, yet they generally fail to reveal the maturity of a trend. Moreover, these technical approaches to trading are not as useful in establishing price targets as the Wave Principle.
Here's another big advantage of using the Wave Principle in your trading, which comes directly from the free eBook "How the Wave Principle Can Improve Your Trading" -
The Wave Principle also helps you to identify price levels where you may want to place protective stops.
What advantages does the Wave Principle offer to traders?
Here's one of the big advantages of using the Wave Principle when trading: you can increase your understanding of how current price action relates to the market's larger trend.
Other tools fall short in this regard. Several trend-following indicators such as oscillators and sentiment measures have their strong points, yet they generally fail to reveal the maturity of a trend. Moreover, these technical approaches to trading are not as useful in establishing price targets as the Wave Principle.
Here's another big advantage of using the Wave Principle in your trading, which comes directly from the free eBook "How the Wave Principle Can Improve Your Trading" -
"Technical studies can pick out many trading opportunities, but the Wave Principle helps traders discern which ones have the highest probability of being successful."Indeed, this valuable free eBook shows you how to identify and exploit the market's price pattern, as shown in the Elliott wave structure below:
The Wave Principle also helps you to identify price levels where you may want to place protective stops.
"...although the Wave Principle is highly regarded as an analytical tool, many traders abandon it when they trade in real-time -- mainly because they don't think it provides the defined rules and guidelines of a typical trading system.
But not so fast -- although the Wave Principle isn't a trading "system," its built-in rules do show you where to place protective stops in real-time trading."Before you attempt to identify price levels for protective or trailing stops, you should first become familiar with these three rules of the Wave Principle:
"How the Wave Principle Can Improve Your Trading"
- Wave 2 can never retrace more than 100 percent of wave 1
- Wave 4 may never end in the price territory of wave 1
- Wave 3 may never be the shortest impulse wave of waves 1, 3, and 5
Here's what you'll learn:
- How the Wave Principle provides you with price targets
- How it gives you specific "points of ruin": At what point does a trade fail?
- What specific trading opportunities the Wave Principle offers you
- How to use the Wave Principle to set protective stops
This article was syndicated by Elliott Wave International and was originally published under the headline Big Advantages of Trading with the Wave Principle. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
3/7/11
Technical Analysis - Gold
Charts are expandable in most browsers.
We are currently long gold futures with a maximum stop moving up to 1410.40. As usual, we are also watching the trendlines.
Weekly and daily moving average envelops in gold futures are in uptrend mode. The short term 60-min envelope is currently neutral. The Relative Strength Index (RSI) is in uptrend mode on all three charts.
The Dynamic Trailing Stop (DTS) is in uptrend mode on both the weekly and daily bar charts. Directional Movement Index / Average Directional Index (DMI / ADX) is also showing an uptrend.
Current Stance
Long Term:
Hold a mix of CHF, USD, Gold and Silver in physical form as much outside of the banking systems as possible.
Intermediate Term:
Long
-current maximum stop: 1410.40.
We are currently long gold futures with a maximum stop moving up to 1410.40. As usual, we are also watching the trendlines.
Weekly and daily moving average envelops in gold futures are in uptrend mode. The short term 60-min envelope is currently neutral. The Relative Strength Index (RSI) is in uptrend mode on all three charts.
The Dynamic Trailing Stop (DTS) is in uptrend mode on both the weekly and daily bar charts. Directional Movement Index / Average Directional Index (DMI / ADX) is also showing an uptrend.
Current Stance
Long Term:
Hold a mix of CHF, USD, Gold and Silver in physical form as much outside of the banking systems as possible.
Intermediate Term:
Long
-current maximum stop: 1410.40.
Tehcnical Analysis - Swiss Franc 3/7/11
Charts are expandable in most browsers.
Both the long and the intermediate term trends remain up in Swiss Franc futures contracts. Maximum stops for our intermediate term long trade are currently at 1.0520, and we are also watching the relevant trendlines.
Our moving average envelope remains in uptrend mode on both the weekly and daily bar charts, while being a little more neutral on the short term 60-min chart.
RSI is also in uptrend mode on both the weekly and daily charts, but is more neutral on the 60-min chart.
The Dynamic Trailing Stop (DTS) is in uptrend mode on weekly and daily bar charts. Directional Movement Index / Average Directional Index (DMI / ADX) is also in uptrend mode on these charts.
Current Stance
Long Term:
Hold a mix of CHF, USD, Gold and Silver in physical form as much outside of the banking system as possible.
Intermediate Term:
Long
-current maximum stop is 1.0520.
Both the long and the intermediate term trends remain up in Swiss Franc futures contracts. Maximum stops for our intermediate term long trade are currently at 1.0520, and we are also watching the relevant trendlines.
Our moving average envelope remains in uptrend mode on both the weekly and daily bar charts, while being a little more neutral on the short term 60-min chart.
RSI is also in uptrend mode on both the weekly and daily charts, but is more neutral on the 60-min chart.
The Dynamic Trailing Stop (DTS) is in uptrend mode on weekly and daily bar charts. Directional Movement Index / Average Directional Index (DMI / ADX) is also in uptrend mode on these charts.
Current Stance
Long Term:
Hold a mix of CHF, USD, Gold and Silver in physical form as much outside of the banking system as possible.
Intermediate Term:
Long
-current maximum stop is 1.0520.
Technical Analysis - Silver 3/7/11
Charts are expandable in most browsers.
Last week we moved stops for our intermediate term long position in the silver futures market up to 32.253. As of this posting, we have moved those stops up further to 34.290. We will also continue to monitor the relevant trendlines.
Clearly, both the long and intermediate term price trends are still up in Silver as of the time of this posting.
All three moving average envelope charts are in uptrend mode.
The Relative Strength Index (RSI) indicator is also in uptrend range on all three charts.
The Dynamic Trailing Stop (DTS) is in an uptrend on the weekly and daily bar charts.
Directional Movement Index / Average Directional Index (DMI / ADX) is also in uptrend mode on the weekly and daily bar charts.
Current Stance
Long Term:
Hold a mix of CHF, USD, Gold and Silver in physical form as much outside of the banking systems as possible (think safe global storage).
Intermediate Term:
Long
-current stop is at 34.290 at the time of this posting.
Last week we moved stops for our intermediate term long position in the silver futures market up to 32.253. As of this posting, we have moved those stops up further to 34.290. We will also continue to monitor the relevant trendlines.
Clearly, both the long and intermediate term price trends are still up in Silver as of the time of this posting.
All three moving average envelope charts are in uptrend mode.
The Relative Strength Index (RSI) indicator is also in uptrend range on all three charts.
The Dynamic Trailing Stop (DTS) is in an uptrend on the weekly and daily bar charts.
Directional Movement Index / Average Directional Index (DMI / ADX) is also in uptrend mode on the weekly and daily bar charts.
Current Stance
Long Term:
Hold a mix of CHF, USD, Gold and Silver in physical form as much outside of the banking systems as possible (think safe global storage).
Intermediate Term:
Long
-current stop is at 34.290 at the time of this posting.
3/3/11
A Three In The S&P?
We will be sellers of the S&P 500 if prices break below yesterday's low of 1302.58 (price based on cash market). This would be an intermediate term trade for us, taking us out of an intermediate term long position and reversing to short. Reasoning: such a break would leave what would be considered a corrective three waves up pattern under the Elliott Wave Principle.
Stops would be at the turn high. If prices first move above the 2/18/11 intraday high, then this set up will be negated. This set up is discretionary a mix of Elliott Wave and trend following. While the wave pattern does give us some insight into the possible intermediate term trend for this market, we are requiring prices to confirm the possible trend before we plunge in.
For more S&P 500 charts and commentary go to our latest weekly S&P post.
Stops would be at the turn high. If prices first move above the 2/18/11 intraday high, then this set up will be negated. This set up is discretionary a mix of Elliott Wave and trend following. While the wave pattern does give us some insight into the possible intermediate term trend for this market, we are requiring prices to confirm the possible trend before we plunge in.
For more S&P 500 charts and commentary go to our latest weekly S&P post.
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