30 thoughts on “CHART OF THE DAY

  1. David Silver

    And still no mention or due diligence in energy? Look in overseas trading ladies and gents.
    A monumental event is taking shape surpassing gold’s technicals byba country mile my friend.

      1. David Silver

        A break above $45.88 as well as Tuesday’s close above her 50DMA equals fireworks.

        Mr. Savage thanks but not a member just yet.

  2. Tenyear

    Went long GDX at the close yesterday. I like the setup and weekly charts. I think we are going to get a move up to $18-$20 area.

  3. Dan

    Yep – these gold miner gap and fades are just outright comical at this point. get the washout to single digits on GDX over already.

  4. AlexP

    Good! Finally, you’ve got convinced: low in stocks is in sight in spring not sooner 🙂
    Chips are falling just as expected an commented upon extensively yesterday:
    – stocks and USDX are highly correlated
    – now weakness in stocks re-permeates the psyche of participants, further lending weakness to USDX due to the strong positive correlation
    – USDX is losing steam in its battle with its 50dma and bulls are taking the final defense
    – writing OTM puts and buying OTM calls in GLD is close –> I just need USDX below 95.99

  5. AlexP

    …and, Gary, I think w will see lower levels for broad market indicators for stocks by October 13.
    for instance now McLellan at just -104 on Aug24 will be easily defeated by the carnage to start tomorrow and to continue until Oct 13.
    This will provide further evidence that October cannot and will not set the 7YCL; such new extreme lows in broad market indicators will beg for at least one bullish divergence

    1. rcun

      Dollar traded at 95.97 around noon. Did that cause you to act? Care to expand your thoughts on the general market. Looks like you are longer term (6 months) bearish. Short from this point or do you think one more opportunity to short a bit higher than here?

      1. TRADERPL

        Hi Alex ,
        I think the world and its mother understands some significant events are unfolding in the next 6+ months . Appreciate your comments and any help you can give to understand how events play out. I need help understanding your timing and which exactly are the key events.

        Which is the bigger event overall Oct carnage or 7YCL, i.e. likely by April-May 2016.
        Does the SM bear run from now till 7YCL in Q2 2016
        What kind of carnage in Oct and if this is a key month , how would you describe 7YCL event in April-May 2016.
        Why Oct 13th specifically , if this a chart based date eg Fib/EW.
        Are PM , Energy and commodities all down in the run into Christmas with no recovery until 7YCL event

        1. AlexP

          the answer below is for you too, Traderpl. For me it is clear that it will take at least one more IC to complete this multi-year cycle because of too many fundamental imbalances in the Far East, institutional problems in EU (the fiscal union must be implemented and until it happens, the EU is exposed to any other outside shocks), US economy looks pretty fine but it must pay its cyclical duties and now it is about time.

          I can only guess that it will most likely be only one more IC which puts the 7YCL in spring.
          But that’s a general framework which I see very probable, like a painter makes an overall sketch before actually putting dye on the canvas.

      2. AlexP

        Sorry, Rcun, but I didnt and do not see USDX having fallen below 96 yesterday. Therefore, I have got no signal on dollar’s side to trigger a bullish trade in gold for me at least.
        As I personally see things developing: gold follows usd (nothing savvy about this) and, for now usd follows stocks like a shadow.

        Yes, I am bearish until Oct13, extremely bullish for Oct-Dec period, and very bearish afterwards into the spring. Mind the Japanese economy – Abenomics do not work, demographic problems, and particularly, the Japanese economy has lost its competitive edge in hi-tech (they still run first into some parts of robotics but otherwise, they are not leaders anymore) and ALL THAT NOW TRANSLATES INTO CONSTANT CURRENT ACCOUNT DEFICITS. What does a current account deficit mean ? It means that the economy relies more and more on foreign debt to finance itself unlike prior decades when Japanese economy was financing the rest of the world.
        These are the premises lying on a MOUNTAIN OF PUBLIC DEBT !!!
        Chinese issues and market’s perception about it will spill over soon into market’s sentiment over Japanese economy.
        REMEMBER 2010: At that time JC Trichet, the ECB President at the time, was advising UK to embrace the euro because the common currency was more stable than the sterling. The euro-zone turmoil was on nobody’s mind at that time and Trichet could afford the arrogance.
        What ensued is smthng we all know.
        THE SAME IS WITH JAPAN: NOBODY MINDS IT AND ITS PROBLEMS, BUT THEY ARE THERE LURKING. it’s a matter of months until the Eye of the market looks at it.

        Otherwise, I agree with Gary, NO STOCKS SHORTING to be now initiated.
        My open positions are indeed 2 shorts in DATA (15% of equity upon entry) and ORCL (10%) and long in UGL (10%) but I initiated them on Sep17 and I keep them with tight trailing stops.
        The rest is cash out of which I would happily dedicate 2% equity risk, half writing put and half buying call in O-T-M GLD.
        NB: I got stopped out on VDSI and CYBR shorts on a squat on Sep18 though, damn!

        So that’s my fundamental view and how I am positioned. I will get back in cash gradually until Oct13 and then I plan to initiate longs in stocks.
        On the technical side of how I view things, Ive already expanded upon yesterday and especially 2 days ago.
        Hope all that answers to your question, Rcun! Ive done my best though considering I am in a hurry to get into Romanian mountains (i live here) to spend some time picking mushrooms 🙂

    1. gary Post author

      I told you it wasn’t going to be easy shorting this market. Wait till we have confirmation of a lower low before selling short. There is still risk the Fed prolongs the drop into the 7 YCL out to spring. It’s not my prefered scenario but still possible. One has to be careful shorting against an opponent that has a printing press.

      1. Dan

        I’ve been holding December 115 puts since that Fed reversal day two weeks ago. I’m already in the green and not interested in gaming the short term swings. This is a hold until end of October/early November, market should break hard by then.

        If not, it’s a very small percentage of the account, as much as I ramble like a lunatic on here.

        Credit spreads blowing out and commodities rolling over today.

  6. red

    From 1930 to 1979, nearly half a century during which investors on average earned 1.5% less
    than the rate their principal was eroding due to inflation. It was a savers nightmare.

  7. David Silver

    Unprecedented gold ramp up! Buyung more energy here with thanks to the market maker manipulators as seen in Thursday first half an hour shannigans.

  8. Tony @ Investing Track

    The level of volatility in SPX is certainly bearish. Markets usually rise very steadily after they’ve bottomed. With Q3 earnings season coming up, I think SPX will make a lower low (i.e. to 1800) sometime in the next 2 weeks.

  9. Dan

    LOL market set close green after a disastrous, recessionary payroll print. I’m about to give up being a bear, you guys were right, Fed gangsters control everything.

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