Hurricane Sandy closes US stock markets through Tuesday

The US stock and options markets will remain closed through Tuesday, as the Eastern Seaboard braced for what could be colossal impact from the much-anticipated Hurricane Sandy.

Markets are due to reopen on Wednesday if the storm clears, CNBC reported, noting the last time the markets were closed for two straight days due to weather concerns was in 1888.

The markets last closed due to extreme weather in 1985, when Hurricane Gloria hit the US, Barron's reported.

The decision to keep the markets closed comes after the storm forced tens of thousands of Wall Street employees to remain at home due to the city's mass transit shutdown, CNBC reported.

According to CNBC, Goldman Sachs, Citigroup and other global banks have activated their September 11 "emergency plans" to put some traders in hotels near their offices during the shutdown.

Anyway, stats and news aside, I am still on the sideline and having a break. I will not be back till later in the week, so thanks for your emails and patience. These are the one of the things we have no control over, and my thoughts and prayers are with those in the affected areas.

Thankyou.

Chip :=)



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Damn! Hurricane Sandy Comparison

Stock markets are closed Monday as Hurricane Sandy hobbles New York. I have just decided to take this opportunity to have a few days rest from the markets. I will be back trading mid week though. Thoughts and prayers are with those in the path of Sandy.

My friend in the U.S. Sent me this photo today, and shows just how large this Frankenstorm is compared to Hurricane Irene back in 2011.

It really puts things into perspective. WHOA! It's ONE BIG MONSTER!!! That is for sure!

WOW!







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hurricane sandy - hurricane sandy will be bad

hurricane sandy warning

A little bit off topic today, but I was watching the weather channel at 2am today, and they are reporting about hurricane sandy and not more than 5 minutes after I had a friend send me an email, saying that his friends down in NEW YORK have a weather tracking station and software tracking devices, and told him to get the hell out. They are predicting hurricane sandy to be much more nasty than other people and the news out there are saying.

hurricane sandy

I think For the east coast, the hurricane is going to be very, very serious, lots of wind, power outages and flooding but people will be unprepared for hurricane sandy, so please stay alert and take the nessesary precautionary measures. I know it is on the news but people will not be prepared.

So if you are living in the direct path of hurricane sandy, please be careful  I have many trader friends, who read this blog and they have bugged out and left the area. Please be safe!!!  Maybe alot of places will flood that have not been mentioned as there has already been deaths and much damage in the island and cuba region.

hurricane sandy path

They are saying Massachusetts will start to feel hurricane Sandy 's fury; and the governor has declared a state of emergency, but please if you are in the area, stay safe. After causing heavy damage and at least 58 deaths in the Caribbean, Hurricane Sandy is expected to make landfall very soon, so please bunker down and use common sense.

hurricane sandy

Forecast For Hurricane Sandy

As a tropical cyclone approaches land, the worst storm surge is almost always where the winds are blowing from ocean to shore, where the wind pushes the water toward and onto the shore. In the case of Sandy's potential track, this region is on the north side of the center. In this morning's GFS scenario, Sandy's center passes over eastern Long Island, Connecticut, and Rhode Island. 

This would result in the highest surge north of New York City: Rhode Island, Massachusetts, New Hampshire, and possibly Maine. The ECMWF forecast from this morning is a bit further to the south. It's suggesting Hurricane Sandy 's center will meet land in New Jersey. This scenario opens up New York City, Long Island, Connecticut, Rhode Island, and southern coastal Mass. to the largest surge. In general, the places that will avoid the largest storm surge are those that are south of where the center of the storm makes landfall. The National Hurricane Center's forecast is similar to the ECMWF, but most importantly, its forecast is also to not focus on the exact point of landfall because of the size of the storm, and that widespread impact is expected.

Please be safe. 

massive inflation coming

massive inflation coming

Is there massive inflation coming ?

massive inflation coming

That is the question on most peoples lips these days, as interest rates are kept at all time lows.


The Federal Reserve's latest stimulus will not boost economic growth without creating unwanted massive inflation coming  said Jeffrey Lacker, president of the Richmond Fed and lone dissenter on the central bank's policy committee.

The Fed's indication that it expects to keep interest rates near zero until at least mid-2015, and the suggestion that rates will be kept low even as economic growth picks up.

Improvement in labor market conditions appears to have been held back by real impediments that are beyond the capacity of monetary policy to offset, Lacker said in a statement. In such circumstances, further monetary stimulus runs the risk of massive inflation coming in a way that threatens the stability of massive inflation coming and other expectations. Most people will not be ready when the storm comes, because alot of people are really just taking all this news as hype and do not see the bigger picture of what is going on.

massive inflation coming

Three years into an anemic recovery from the deepest recession in generations, the economy expanded at an annualized rate of just 1.3 percent in the second quarter, and growth is expected to remain below 2 percent in third-quarter figures to be released on Friday.

Unemployment fell quite a bit in September, but remains at an elevated 7.8 percent, and current growth levels suggests little further improvement. Massive inflation coming is on its way, but in the meantime, has remained consistently low and stable.

Against that backdrop, the Fed announced in September that it would embark on an open-ended program of asset purchases aimed at stimulating economic activity and business investment, starting with a monthly $40 billion in mortgage-backed bonds.

This week, it reiterated the policy and made only modest tweaks to its characterization of the economy.

Without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook.

Top Fed officials, including its chairman, Ben Bernanke, have argued the effort to keep rates low for a prolonged period will give businesses the kind of certainty that will allow them to invest despite a turbulent global economic backdrop. What a joke, but I see far too many people screaming at Bernanke. Do not do that!, WHY? he is just a puppet on a string. A minion boy taking orders from those at the top.

Official who have broken ranks are exposing the truth. The Federal Open Market Committee at every meeting this year, thinks monetary policy has already been pushed to its limits.

Saying that the federal funds rate will be exceptionally low for a considerable time will observe a marked increase in the growth of employment and output. But in the end it implies providing too much stimulus beyond the point at which rate increases and the result will be massive inflation coming.




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Bullish Divergence All Round

I went large long overnight in globex, and it proved to be a very good bet.

1) We had the bulls come back quite rapidly by the close today. That is bullish. 

2) The candle at the close today will make a BULLISH SWING day play next week a low risk trade

3) We have a nice bullish divergence now showing on the hourly chart. 

So with these three things in mind, there is likely more up coming early next week.

Have a great week guys and gals.

:-)


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Post Opex Move

It seems there are now more bullish divergences on the charts in globex, and some of the weak sell stops have been hit and cleaned out a bit.

I talked about what was setting up in the hourly chart early morning > HERE!

The market opens in about 2 hours, and we are sitting right at the previous support that goes back to the end of AUGUST this year. I think anything over 1402.75 and we could class that as bullish.

spx chart

Again, I must make mention that it is smart to look for a bounce late in the week after opex. We did not get any real bounce yesterday, but maybe today??? We shall see.

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In Waiting

We seem to be in waiting still on the market.

The hourly chart is still oversold, and a bounce is soon expected. How far and aggressive is not known yet, but in saying that, the charts are still oversold, and does have some upside room left as you can see below.

Realistically when we go back, the market has not really done much this week. That is why I have not been tied to this seat too long. There is a reason for that, but I will not go into great detail here in the free room.

Cheers.

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falling wedge pattern

falling wedge pattern

Another update today...Thursday

Taking a look at the leader, or the NASDAQ daily chart, it seems we are forming a bullish falling wedge pattern. These are normally seen as bullish formations (even though prices have been falling) before more buying comes in. So far the warning signs are there.  There was a hint in globex that some buy stops being taken out, and also I posted the vix was giving us some tell tale signs, but now only hours later, they seem like they want to take out more buy stops.

We will need to get over the higher resistance line of the bullish falling wedge pattern to play out further , however things are looking like they getting ready to bounce a bit for a few days.

bullish falling wedge

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Vix Chart And Other Musings

vix chart and other musings

Lots happening and good stories in the VIP SECTION  We are having a ball, literally, and making good money as well.

Today we noticed something very interesting with the VIX chart. The action is outside the bollinger bands, and that has not happened for a while. Each time this did happen, the action soon came back down inside. So this could mean a nice significant rally is just around the corner. Historically I like the chances, but we shall see.

Today was a tricky day on the S&P. The daily chart right now is still suppressed. However the low 1400's are going to be crucial. We could also be setting a bullish falling wedge, or it could be developing which sort of confirms the weird action in vix.

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Shake, Rattle and Roll

Well.... what a difference one day makes on the market. It was a shake rattle and roll to the downside today. We went down to the 1402 and down in the dumps.

The SPX opened below the support area and shake, rattle and rolled all the way down.

The weekly S&P chart we have a double top now confirmed, and a significant break below the rising support that has been intact for several months.

As long as we stay below 1435 the bears should have the upper hand.

I think this is just a shaking out of weak longs, and we could see some more downside, but it is normal after opex to see some sliding down early on in the week, and then very healthy bouncing back up late in the week. We will wait and see.

Chip :-)

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crb index chart

crb index chart 

Taking a look at the crb index chart is very interesting. Infact, I had to really sit back and stare at it for a moment or two, as it was quite eye opening. Have a look at the crb index chart chart below.

crb index chart

The crb Index chart is one of those charts that is again giving us a big WAKE UP CALL.

Back about a month ago, sentiment was telling us that there was almost NO BULLS LEFT...and that is a sign that a big movement is due in the opposite direction.

The writing is on the wall here, and the monthly charts are such a good indicator for the CBR index chart.

As you can see, the last time we were this oversold in commodities, we experienced a rally that tore apart the bears, and even shocked the bulls. Do not be surprised to see that happen again, with a time estimate out to about 2014 or so.

All I can say here is WOW!


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Waiting Pays Off

Just a quick post today as I have a big VIP update, and session going on today.

As you can see on the DJIA daily chart there is a few things going on. We have been in a range for several weeks now. The bears did try to break the lower range today, but were not successful at all. 

We shot up aggressively into the close today and that has given us an 80% chance for a BULLISH swing day tomorrow.  

The tick data below took a Higher low today, which is very interesting, but still not on a BUY signal but it is getting very close. 

That is all for now. I Have a busy day this end, so hope it helps. 

Happy Trading

- Chip.

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nasdaq index chart

nasdaq index chart

Taking a look at the nasdaq index chart, the leader has been in a nice downwards channel since the end of September this year.

Friday was quite a big selloff day as you can see. But the nasdaq index chart is showing us sitting at the bottom or support of the downwards channel, so monday will be very interesting.

nasdaq index chart

There is a lot of hype and other pundits out there talking about 1987, and we even posted about this over the weekend. Lots of people are panicking and talking about a historical 25th anniversary of the market crash. The nasdaq index chart even shows two larger sell off days that have occurred and that is a telling sign. However, there is no need to panic at all, and the hype and hysteria is always going to be there. Many amateurs get caught up in this, and wonder why their account soon blows up.

The market has been very strong for months now, and we are getting a little 'back and filling' on the market which is not only normal, but healthy as well.

The crash of 1987, happened back in 1987. That is what people to FAIL to realize  Things were different back then, investors mentality was different, the market itself and the dynamics were a totally a different ball game. These are the biggest things people are forgetting.

nasdaq index chart does not give any indication we are about to crash, neither does sentiment. So we just watch and wait here, while others get caught up in the hype and panic.


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Black Monday : Could It Happen Again?

‘Black Monday’: Could It Happen Again?

After seeing a big downdraft on the stockmarket Friday, can we see a ‘Black Monday’: Could It Happen Again?

Black Monday: Could It Happen Again?

Twenty-five years after “Black Monday” — when the U.S. stock market went into a free fall and the Dow Jones Industrial Average lost 22.6 percent in a single trading session — some market experts believe we could still see a repeat of the worst one-day plunge in history.


‘Black Monday’: Could It Happen Again?

The directors of S&P 500 committee at Standard and Poor’s, talked with media on Friday and told them, “We could get to a point where everybody decided that the world was incredibly over-valued and the only thing to do was to sell,” he said.

“We do have circuit-breakers and in theory they would work very well, but the human psychology that was around in 1987 is still around today and that is that everybody can suddenly change their mind and the result can be a massive crash.”

Before we go asking ‘Black Monday’: Could It Happen Again? We have to remember that back in 1987,  trading predominantly happened on the floor of a particular exchange, human fallibility was a threat — and it still is.

“We weren’t safe from the human element then and I don’t think we’re safe from it now,” he said.

Although global stock markets and trading have become highly technical and computerized over the last 25 years, the absence of the human element has not meant that glitches have become rare.

The market dynamics have also changed. Think back to a few years ago to when we witnessed the so called, 'Flash crash' where everything went down and came back up again. So things can happen much more quickly than they used to. … I think the danger is still there.”

 “What we’ve really learned in the last five years is that just about anything can happen again. We didn’t expect a recession like the Great Recession, we didn’t expect to see a financial crisis, but we got them.”

‘Black Monday’: Could It Happen Again? Well, there is really no way to know. However as stated we should always be expect the unexpected, and trade accordingly.


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1987 Crash Anniversary

Well, this morning I was speaking to a good friend of mine on skype, Matt. He was actually down on wall street back in 1987 and can remember the panic that day and he reminisced. Him and his clients went through a lot that week. OUCH.

As I woke I kept reading headlines about today being the 25th anniversary to the 1987 crash, and did not really take any notice. But the market did put in a nice red candle day, something we have not seen for some time.

Zooming back and looking at the S&P chart longer term, you can see the last month or so we have been jostling within a rectangle pattern. After the close today, we are now back down near the support.

This market is a 'DAYTRADERS Dream', and next week is going to be interesting.

I am of the opinion that we might be getting a little overdone to the downside especially after today's action and there might be a sweet spot for a short term swing long coming. Time will tell.

Have a great weekend :-)

- Chip.

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WOW what a great week

WOW what a great week it has been in the VIP section. 

Even though OPEX is known to be crazy we had a plan and it paid off. :-) Very happy.

Yes our VIP section is still closed, the reason is that I do offer free advice here, but I spend lots of time with my VIP clients and I love to see them make money, they are quite successful.

Now quickly back to the charts. OPEX is here, and on the dow jones after todays action we look to be seeting up a bearish swing day. 

The S&P is back up at the highs at the start of OCT and we seem to be hitting some resistance also. So there is a fair chance we might get some follow through on friday. The day could be a bit wild and crazy though. So BUCKLE UP!!!!

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1987 stock market crash coming

1987 stock market crash coming?

If you are old enough to remember the 1987 stock market crash do you remember waking up to the newspaper and reading this?...

1987 stock market crash

the 1987 stock market crash was a horrific event and wiped out many people who were in the market.

Although most have forgotten about 1987 stock market crash, subconsciously it is still in the back of most minds and we can be quickly reminded of its "Atrocities".

Even though the 1987 stock market crash wreaked havoc for many, there is a likely prospect of this happening again. Yes! That is a daunting prospect, as at current levels the dow jones would go back to 3,000 points in one trading session.  

Due to these1987 stock market crash events, stock exchanges have put in place circuit breakers (which occur automatically) and suspend trading  to avoid such catastrophes, but we are still kidding ourselves if we think these types of events are not going to happen.

Also recent studies seem to suggest that history repeats itself on the market. This fascinating study has proved that the frequencies of large market movements tend to happen on anniversaries of previous major market events. That is why many analysts are focusing on OCT 19th this year, as it marks the 25th anniversary to the 1987 stock market crash where the DOW JONES plunged 22%.

There is a saying amongst traders that is "History does not repeat, but it tends to RHYME on the market" That is another reason that a 1987 stock market crash could be well on its way, not an event exactly like the 1987 stock market crash, but maybe something similar or in tune.

Studies that predict longer term market cycles have proved that every 104 years, the market sees a sudden single-session drop of over 20%. The worse thing about this is they can occur anytime, and you always have to be prepared for it as best you can.

1987 stock market crash events are always inevitable because major players, and larger investors who dominate the market can cause a panicked chain of events, and even with circuit breakers and other protections put in place to keep investors from harm, they are normally not enough. 

Banks, Mutual funds, and institutional investors have warned many investors over the years about these risks that always lay hiding and waiting on the market. However the market is a casino game based on fear and greed. The average investor only cares about making money without seeing the risks of major market events like the 1987 stock market crash. Greed right now is rife as investors are trying to make up for the money they lost in the 2008 crisis. And that could have devastating consequences.

In 2012 regulators are trying to formulate reforms and implement their own ideas that will decrease the chances of seeing larger 24 hour movements on the market. But realistically nothing can stop these events, and the reforms themselves have been criticized as lulling investors into a false sense of security.

A 1987 stock market crash is coming, it is not a matter of IF, but WHEN!

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Fun Times!

Well I love it when the market plays along with our plans. Just days ago I posted here in the FREE Section that we should look for a low THURS - FRI before expiration. Our VIP members got long and guess what.....that is exactly what happened.

Headlines today after close : US Stocks See Biggest 2-Day Gain In 5 Weeks On our buy point Sunday

I hope you were able to take advantage of this nice move since Sunday. Our VIP MEMBERS here have done very well. 

Have been giving lots of edges here lately and lots of good calls, I love helping people, but VIP is where the real action is. :-)




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And There Is The Bounce!

The terminal read was suggesting and hinting a bounce was coming, and our VIP clients got long and had lots of fun today.

As stated end of last week, we were looking for a low going into this week and expiration, and the smart money was not selling the action. Alot of people were screaming to go short, but they would have run into a lot of trouble today, and the smart money was not selling. Infact they were doing quite the opposite as you can see what was happening on the charts.

The S&P seems to be trading in a rectangle also, so technically we got a nice bounce off the basing of this pattern.

Again while others were out there screaming to go short, we remain calm and read the sentiment that buying or some sort of a bounce was coming, and that is exactly what we got.  :-)

Stay tuned for more.

Happy trading. :-)


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Do Or Die Area On The Charts

I went through many charts over the weekend. Below is an interesting one. This is the DOW JONES weekly chart. We are still inside an upwards channel, but down on support. So we are sort of in a DO OR DIE area at the start of this week. Still nothing telling us we should be falling in love with the down side yet.

Have a great week, I will be back with an update in a day or so. :-)



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will obama win a second term

will obama win a second term in 2012?

With only weeks away now till the US election that is the ten million dollar question for political analysts everywhere and also the general public.

will obama win a second term and not only make history but also slay the negativity that circulates around him right now. The economy is struggling, families are in need, while millions of dollars are thrown in the they kitty to help Obama on his crusade to win favor amongst the american people.

will obama win a second term

Alot of people see the obama as a hypocrite, he has the gift of the gab, and is trying to convince people he is the right man for the job. However in the last 4 years he has not really fixed the economy, the housing crisis continues, unemployment is sky high and there seems to be another financial crisis 2.0 lingering just around the corner.

will romney win the 2012 election

   Close on Obama's heels is the mystery man Romney. He is clean cut, rich, lives in glamour, but realistically is a too chivalrous to win this election. He is scripted alot, and the show he put on at the debate a week ago was just a well rehearsed punch and judy doll play.

He seems to quickly poke fun at Obamas weaknesses and his monotonous screw ups over the last four years, however when interviewers ask Romeny what he can bring to the table, he seems stutter and stammer and read down off a script. There is a nervous there, that many people can see. An uneasiness that brings up many questions. This is a man that is caught off guard and is just enjoying the glitz and glamour of being up in front of the podium, and you can tell from the way he talks, and over thinks the questions that are laid out before him. Is this a man who is hiding from the truth and trying to tell the people of the US what they want to hear? Well it certainly looks that way.

will obama win a second term is a question that keeps being asked, but we all know intuitively the answer should be a NO, but who else is there for the job? This is going to get Obama over the line whether we like it or not. Yes, its going to anger and upset a lot of people, but there are too many unknowns with Romney. With the economy the way it is, that is what scares the average american household right now.

Speaking of households, the nation is getting to know the Barak family more intimately.

When his wife Michelle was asked  ' will obama win a second term ?' she delicately replies "Of Course He will!"

Make no mistake, his wife, children and loved ones are backing him up all the way. But he is going to need alot more than family and well wishes to win this one. Still he seems to have the majority on his side with only weeks away till the final decision is made.

Right now he is only infront by a whisker, no thanks to the latest televised debate, where he seemed to stare off into space bewildered  tired, and confused. But it is likely that the American people who vote are going to chose Obama over Romney. Maybe it is a case of better the devil you know, but no matter what you think there is still evidence out there that Obama clearly has it in the bag. But do not be surprised if Romney really makes a go of it. But it seems that Romney just wants to be famous for something, you can see it in his eyes. That is not a good trait you want to see in a president.

So, will obama win a second term, well forget the opinion poll for just a moment and lets get the experts opinion. Here is a very sharp guy from Australia that has predicted the last several elections with eery accuracy! His analysis of what is happening in the economy and political landscape is second to none. See what he is saying about the upcoming 2012 elections in November.

Click on the "play button" below to watch the short video.

will obama win a second term video

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Range Trading

We posted the warning signs of a bounce that could come to the market HERE YESTERDAY  Today on Thursday on globex, we could be seeing further evidence, that that is what could be happening.

When we take a look at the leader, or the DOW JONES Transports, we can clearly see that over the last few months, we have been in nothing more than a slow and steady grind within a rectangle range. You could say that we have been stuck in a box, and currently at the 5000 level.

As the market sold off into the close yesterday, the tick was showing resilience and is still down in oversold territory, so again I would not be surprised to see some buying into the end of the week come back. 

We are also following our rules about looking for a low the Thursday or Friday the week before the OCT expiration. That would be in the next day or so. :-)

Happy trading :-)

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Bounce Is Due Soon

Bears out there are getting super excited right now, as we have been down for two days straight after the long weekend.

Monday and Tuesday the bears have come back, but we still have to remember we are longer term bullish, at least until 2013.

Even though the market is taking a rest mid week, what is interesting is the hourly chart. As you can see, in the short term, we are at extremes right now. The hourly chart is suggesting we are very overdone on the downside and we are now in oversold territory. So yes, there could be a bit more downside, however I would be expecting to see some sort of bounce very soon on the market. Probably in the next few days.

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Stocks Still Better Than Bonds

Stocks Still Better Than Bonds 

Right now it seems money is still pouring into the stockmarket. Stocks Still Better Than Bonds ? Well here are some facts that will help you decide. 

Stocks Still Better Than Bonds

Studies are now suggesting that there is a far better chance that stocks will be better than bonds in the next 5 to 10 years.

WHY? What is happening right now is that there is a shift in the fundamentals and current yields, and brokers and investors are starting to notice it. Some of the stocks are yielding at 2.2 percent, and do have massive earning potential, or growth potential at the moment. The government has no other option but to pay upon the agreed coupons. 

Investors are also slowly realizing the upside in the market could continue as there is still a lot of money on the sidelines doing nothing. Once this money starts shifting back in, it will have a positive effect on the global markets. But astute investors are still looking for a reason to get back into stocks. 

Stocks Still Better Than Bonds when you look at it on a grand scale because some stocks, have earnings growth of about 5% in the next 10 years. Normally the real returns are a little bit higher on average, around the 6.5 - 7% range. But that also depends on the market conditions and valuations in the years ahead.

Looking into the crystal ball in 2012 is probably quite dangerous, as there are many discrepancies with the real economy and issues surrounding currencies and the market itself, however normally when you look at these hard core facts, especially in the past, it is easy to predict whether prices were most likely to go up, down or stay flat in the longer term. Right now things seem to be pointing in a positive direction. 

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Columbus Day - Holiday Reversals Abound

We got a good jobs on friday, number but we whenever we get up to significant highs the market
does like to do a little back and filling!!! So that is what we got today.

But realistically the markets were overbought short term, and into a long weekend, the market does tend to show reversal signs a day or so before. As you can see on the S&P chart below, we stopped cold at the Sept highs and then sold off into the close.

What I want to remind you here is that MONDAY is Columbus Day in the US so the CME the currencies, the bonds and the CME group is closed. Big traders will likely not be doing much till the middle of next week.

With that in mind, I will not be around posting much till TUES / WED next week.

Happy trading :-)

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All About The Jobs Numbers Tomorrow

Well was a good day all round, but we must remember that the market is still trending upwards. Too many traders are trying to call a top and getting burnt!!! OUCH!

As you can see the market did try to break down out of this upwards channel, but the bulls came right back up, and now we are trading in the channel again. You do not have to be Einstein to work out that is pretty bullish, at least in the short term.

As I have been mentioning lately, it is all about the USD, and see how the price came right back to the falling resistance I was talking about a few days ago! WOW! It stalled and back down we went today, to give bulls another excuse to take the market higher. 

The market at the moment seems to take a few days to back and fill and create a higher low, and then then the bulls come right back to take the market higher.

Friday it will be all about the JOB numbers. So I do not think there will be much action till the numbers come out during the day on FRIDAY!!

Happy trading.


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Platinum 1990 Coming

Just a quick post before I head out to dinner. I have been watching and trading platinum lately and think with commodities warming, this is a chart I like a lot.

We have a select few VIP members who love commodities, and I can not blame them and posted my thoughts a while back on this.

Right now Platinum looks like it is still in a nice steep upward channel and has just broken the $1700 level, and could soon be on its way to $2000 or above. I think as long as we can stay within this nice upwards channel the platinum chart looks pretty good.  With much patience the targets for platinum are in the 1990 - 2000 range and might be coming soon. Time will tell.

Happy trading.

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Tick Tock!

The tick data at the close of trade today is very telling I think.

I have only posted a chart in the VIP SECTION HERE 

As you can see, we are still on a tick data sell signal, but.....It seems we have gone down into the oversold area, and that a significant low might have been made today right at the lows, and higher prices or a rally might be coming in the next day or 2.

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Walking On Water

The S&P is still in limbo while we wait for some sort of direction. But I do have some interesting statistics for you today.

But first the S&P 500 chart.....

It seems that over the last week or so we have created an ascending triangle. These are seen as bullish patterns, but we must first break to the upside and resistance line of the pattern first for more buyers to come back in. I significant break below the bottom ascending line will bring upon more selling. So now we just sit and wait!!!!

My intuition is telling me the US administration is going to do whatever it takes to push the market up going into the elections. And when you control the Treasury and own the Fed you can control the Stock Market Direction, despite a horrendous unemployment situation and a near comatose economy.

As a side note, what I want to say here, is that OCTOBER each year is known for its extremely large sell offs and even crashes that can occur on the market. But let me be the first to tell you it has also been known as the "BEAR KILLER" meaning there has been very significant gains or rallies in OCTOBER too.

Hope that puts things in perspective for you.

Happy Trading :-)

The Air Down There!

How is the air down there? Well I must say that the S&P did have a great start to the day, but then trust Ben Bernanke to come through and wreck that. The man got up shaking, his lips quivered, and we all know he was lying through his teeth, but this moron caused the S&P to sell off and wipe out its globex gains by the close. LOL. So a nothing nothing day really!

Looking at the chart, we have still broken the rising channel, and we seem to be forming a small consolidation pattern down there. Is this just a bear trap where we trap traders short and then shoot higher to the moon? or is this a bearish flag (a pattern that normally precedes lower prices) like some traders are seeing.

This market requires a bit of patience, but my thoughts are that even though we have broken the upwards channel the market is still holding its head above water for now. A break below the smaller line on the chart = bearish! But if the buyers take charge and take us back into that bigger rising channel, that will be very very bullish. But for now, we just need to be patience and wait. 

USD

Here we are on the USD. We have been talking about it being all about the dollar recently. The QE3 program is not good for the USD, but no matter what the news brings we must keep watching the charts. Right now the USD is at a make or break area. It is touching the falling resistance line that goes all the way back to JULY 2012. This is a very important area and the next few days are also important as a break will be bad for the US indicies, but hitting this line and then seeing bears come back will actually be very bullish for the indicies. But it is all about the USD right, so we need to be patient and watch as the week is young. :-D

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