Well I am going to stick to what I have been predicting for a while now, that the when the pink trendline breaks, the market target i have now is initially 1012, and then 950.
Today was a monster drop, then rally for part of the day, then last 30 minutes a big sell off.
The gap down was just above the pink line drawn in and then a mass selloff.
The MACD has continued downward momentum, the slow stoch is close to embedding which would be very bearish.
If you look at the graph we have now entered into the previous downtrend that occured during the "flash crash" in May. This pink line may be retested, ideally there will be another close below this line to confirm it.
Remember markets go up and down, as they trend. They can have the bottom pulled out from them but it is very hard to predict that, however, if fear hits this market a mass selloff that gets through the 1012 level, could continue to that 950 level.
GLD
Now to the incorrect trade. I have been very big on silver / gold, I have continuously owned silver mining companies since i have started trading. I have been under the assumption that gold still required a decent correction before it can make new highs. So I attempted to place a bet on the bear side until the correction is over. There was a perfect setup of a evening start on the futures contracts on friday, So i entered monday since it was a weak confirmation. My stop loss is still just above the high on thursday.
Today, however, as the markets dropped and gold dropped initially then rallied sharply. This setup a bearish engulfing pattern. This does require confirmation tomorrow so I am still in this trade until the recent high is taken out (I might exit on friday if i am breakeven since I am not sure how the weekend is going to play out). The slow stoch is still coming out of the embedded mode. And MACD is still pointing to a slowing of buying momentum.
The most bullish part of the chart above is that the gap down occurred at the 50 MA, then bounced very quickly, I believe 17 dollars from top to bottom in 3-4 minutes.
The 50 MA was not pierced so it could be Very strong support.
However....
However....
This guy i have followed for gold a while and he has said that move today was actually bearish.
check out the video for his explanation
IF silver/gold takes off.
The stock above is SBB on the TSX I have followed this company for awhile made some money on it but i have not caught any of the big moves. Such as the move on the August 11th. If gold and silver start to rally, This stock is setup to take off.
It touched the 50 Moving average (hourly), and bounced off at the end of the day.
The momentum is up but the slow stoch is overbought. I expect a partial pull back then a break of that 50 MA and a test of the top purple line, if that breaks and gold and silver make new highs. this stock could easily reach $4 in a couple of days.
kayaking time....
The stock above is SBB on the TSX I have followed this company for awhile made some money on it but i have not caught any of the big moves. Such as the move on the August 11th. If gold and silver start to rally, This stock is setup to take off.
It touched the 50 Moving average (hourly), and bounced off at the end of the day.
The momentum is up but the slow stoch is overbought. I expect a partial pull back then a break of that 50 MA and a test of the top purple line, if that breaks and gold and silver make new highs. this stock could easily reach $4 in a couple of days.
kayaking time....
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