29 thoughts on “CHART OF THE DAY”

  1. David Silver

    Thank you Mr. Savage.

    All systems go in my book, equities here and abroad, metals/mining and energy now has turned up in correlation with the timing band.

    Enjoy the ride

        1. William

          By the way, your SHSZ300 Index (weekly) is attempting to close its gap since August while it is clearly breaking out the horizontal resistance now…good sign if it can hold the weekly candle-stick as it is now to the close.

          And, another white candle-stick next week would confirm the bullishness…otherwise, it could be a headfake!

          Enjoy man!

          1. David Silver

            Awesome to hear William! I got the buy signal Sunday night hence my buying on Monday and again today. In hindsight should’ve capitalized Tuesday and Wednesday but was too focused on gold’s rush.

            I have the Shanghai like that of gold on a technical breakout in which she is kissing under her 50DMA but like gold her momentum is too strong with the help of the US market catalyst.

        1. David Silver

          I’m in Mr. Savage’s corner that the low was put in on August 24th. I’m surprised he hasn’t mentioned anything about it lately.

          Again let the naysayers help propel the cause.

  3. Jay

    Tom,

    You mentioned in the previous post comments that you’ve watch a number of successful daytraders for 10 years, and that you can assure is there are people who can, in fact, day trade consistently and successfully. You also said that you could count on one hand how many losing days your mentor had in a year.

    Do you day trade yourself, and are you successful at it? Are there any books you would recommend for those who want to become successful daytraders? Would you say the 90% who are losers is due to not having a good trading strategy, or is it due to not having right kind of personality (too emotional, etc.) , or do the losing daytraders just lack discipline to cut losses early, etc.?

    1. tom

      I’ve been an individual trader for 24 years – started at 22 years old. Because of humility and superstition, I won’t comment about my own abilities, except to say that I’ve never had a “real job”, I’ve only traded my own account. And my first few years of trading, I was possibly the worst trader in the history of the Chicago Merc. There is only one way to learn how to trade – get together the capital to open an account and trade and lose money until you learn enough so as to not lose money any more and maybe some day, you’ll even start making money. Another words, don’t even try. Listen to Gary – almost everyone loses money overall trading super short term, although I find it “easier” to trade short term than long term, probably, because I don’t get married to a position and I take profits – always looking to take profits is one of the keys to being able to last in this fricked up business. However you also leave alot on the table, which is very frustrating, but you learn to live with it, Yes, over 90% of the people lose for all the reasons that you stated, but basically they, for what ever reason, can’t stick around long enough to learn how to keep the profits rolling in consistently. No matter what the time frame – there are only a few things that matter in markets – risk, probabilities and you have got to have a method to decipher the TREND and then stick with that trend as long as your emotions will allow. And pull profits out at times and always know when you’re wrong and get the F–K out. Others may disagree with what I’ve written here, but this works for me. But listen to Gary and you’ll be better off than not listening.

    1. William

      Yes, China a breakout here. It needs to be able to hold its weekly candle-stick up I to the close of today. Else, you know what might happen…

  7. Paul

    Hi Gary
    Looking at your last gold chart it would seem we touched the 1190 early and are now proceeding down to base at about 1140/1150 before heading up ito the 1220 region. Have I read this correctly please ?

    1. William

      More likely than not, we will see a test of 1,200 as soon as tonight (Asian time)…and correction will ensue next week.

    2. gary Post author

      Gold is holding up very well as the dollar bounces. I think we have one more leg up in gold when the dollar drops down into it’s DCL later in the month and then we get a sharp correction in gold.

  8. zkotpen

    Looking for gold & GDX to finish consolidating Wednesday’s move, then a move up to the 1200 & 17.39 areas, respectively, maybe Friday, then consolidation to the half cycle low during some or all of next week.

  9. AlexP

    Very good observation, Gary!
    I would add two observations to yours:
    – on literally each time such a high McLellan got touched bearish divergences developed –> in line with my comments on Monday, so that now stocks still have plenty of room to go up through the next 2 weeks or so
    – on each time those DCs ended up badly, with huge corrections of about 50% or fib62 –> so we are onto a rough November 😉 (at least in the first half).

    All in all, this is why I told Muffin Top last evening that “I’ve had my fill in this DC” with the 3 acquisitions yesterday and on Wednesday. Buying into this market now is only for very very short-term traders.

  10. Paul

    Thanx Zkotpen
    Where do see gold/gdx finishing into the consolidation before the 1200 move on Friday ? If then falling back next week where do you see GDX by then please.

    1. William

      Exactly what gold did again during asian trading hours – 60mins chart’s stochastic is back down to oversold level waiting to roam soon while the same for USD is at overbought level…

      Don’t hold your breath!

      1. David Silver

        William I live in Hawaii so trading New York time is a chore and tiresome but rewarding and is my passion.

        BTW I really think your topic headline graphics are really artistic and creative!

        When I read your piece on Crude about to breakout a couple of weekends ago I knew you were ahead of the game and knew we were on the same train of thought.

        BTW I’m liking AMZN, check her out. I’m adding her for a hold at the open for a Nasdaq tech play long. I sift through hundreds of charts a day.

        1. William

          Hawaii…cool. I thought my 12 hours ahead here is already a real bad timing, but, yours is 6 hours behind New York? That’s really odd timing for you there!

  12. zkotpen

    Paul —

    I’m starting with a 38.2% retracement of the move from 1136 in gold — around $24-25.
    GDX is harder to predict — maybe somewhere around 16 area? high 15’s?

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