15 thoughts on “CHART OF THE DAY

  1. blars

    So, can we play the next round up with leveraged ETFs to maximize returns?
    If so, a couple of suggestions please.

    1. gary Post author

      I have been playing this with leveraged ETF’s. We took profits a couple of days ago and are not sitting in cash waiting for the bottom of the correction to re-enter.

  2. TenYear

    Bob in the UK:

    Good reply in the last post. Thanks.

    Here in the U.S. where I live, people are eating out like they have a date with the electric chair–u can’t get a seat anywhere good. I would say shopping at malls and other “want” items are average but most of that is done online these days. Grocery stores are packed in key locations. Prices are high on items such as beef, pork, eggs, cheese and deserts. Yet prices seem low on milk, bread, and wine.

    I think the chaos and reorganization of currency will not happen in our lifetime. But it will happen. (I probably have 30 to 40 years of life left). This is perhaps why many gold bulls get labeled as “bugs.” Much of the problem stems with the Fed in that they simply refuse to print our way out of anything. They will print money but only to the extent now that it prevents deflation (and they are still learning how to do that). We are still in the mix of deflation (obviously), so lets see if their printing presses can fire up a little more.

    …we will know in time. Nothing pays like possessions.

    thanks for opening up

    1. Bob UK

      In the UK the once dominant version of your Walmart – Tesco – is struggling big time because people are moving to much cheaper new shops from Germany – Aldi and Lidl.

      Tesco grew enormously in the past 15 years and my own city has several major Tesco stores and loads of small ‘Express’ ones… and, for years, Tesco was the shop where prices could not beat. But Brits are maxed out now and there has been a huge move amongst Brits from shopping in Tesco to shopping at Lidl and Aldi.

      I think the shopping figures for UK stores after Christmas will tell us where we are – unless, of course, everyone splashes out on credit again.

  3. Bob UK

    Miners on the FTSE – the likes of FRES, RIO, Randgold, etc – are all down about 4 to 5 percent currently in London.

    Just reminded of what Gary has been saying about the miners should be making new highs if gold and silver are going up.

  4. gary Post author

    Holy crap did the Fed just halt the daily cycle correction prematurely? I was hoping for at least a 38% retracement but as we’ve seen for the last 2-3 years the Fed won’t abide the market in correction mode as it heads into an FOMC meeting.

    That may be all we are going to get for the daily cycle correction and now we are again on our way to Nasdaq 5100.

    1. Karthik

      Gary, You know it is a bull market in equities (structural/cyclical.. however you want to call it). Why not play it by the old turkey way?

      1. gary Post author

        It is getting very late in the cyclical bull. This is the longest 4 year cycle in history. Plus I think we are entering the bubble phase so one has to be careful that we don’t get caught in the crash when it comes. That being said I won’t be looking for a top until the Nasdaq at least hits 5100.

    1. gary Post author

      TQQQ is a triple leveraged fund on the Nasdaq 100.

      That is a lot of leverage. You better have a stop if you are going to play with something like that.

      1. M.D.Cov

        Dont be fooled by a “dead cat bounce” intraday reversal…….daily bearish candlestick.

        US Indice’s DOWN
        US Dollar TOPPING/DOWN
        OIL DOWN
        OR cash is king

        FWIW — M.D.COV

  5. Bob UK

    Big FTSE miners – RIO, FRES, BLT, RANDGOLD, etc – all down this morning in London. BLT ta 5 year low.

    Not sure whether it is lower oil price that is forecast for 2015 due to surpluses or because of Chinese industrial output figures were so so.

  6. Roy

    Didn’t buy that swing in the broad markets yesterday… just felt wrong. We needed a bit more time to reset a bit more sentiment. But not much more, I don’t think. Hopefully we get a decent reset today. I’ll be buying the next swing, I think. If we happen to tag the 50 DMA too, then I’ll be buying hand over fist. But that position is a date, not a marriage. As Gary says, we are late in the bull… if you get on the right side of a 10% DC rally, then you should protect those profits in this late-bull environment. Good on Gary for holding onto positions so long and capturing so much of the rally. I caught the bottom (how could you not?) but bailed out about 2.5% before the top.

    Too late in the DC to buy gold. Be patient on that one… I am not yet convinced that the bear is done. Someone wanted gold dead. Who? Do they still? Have they just quit attacking it? Do they still have the means and the motive to drive it lower? That is dangerous market until we know.

    Apparently never too late to short oil. Although I’m not willing to be the last guy to that party. Oil is volatile even when supply and demand are constant and predictable, which they are not right now. Just like gold, there is money to be made on the snap-back rally. And also lots to be lost guessing that rally wrong, or positioning against the huge forces who are pushing on price in non-transparent ways.

    The safe and easy money is in the broad market. The Fed is begging you to take it. So take it.

    1. Roy

      Ooh. I just checked and the broad indices did not form a swing yesterday after all. I glanced in the morning and assumed they would, but did not check back during the day since it had not declined enough to interest me. I glanced again at EOD and was not surprised to see that the early strength did not hold, but I failed to notice that the swing did not even form.

      Next week’s swing is going to be very buyable, I think. If we have a really bad morning and decent afternoon reversal today, I might even think about getting into some positions around EOD today. Might.

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