54 thoughts on “CHART OF THE DAY

    1. gary Post author

      I’m pretty sure QE4 has already started so it’s a mistake to think stocks are going to top anytime soon.

      This is the Fed’s last great mistake. It’s going to lead to a huge bubble in the stock market. Followed by a bubble in commodities, focusing in the metals.

        1. Super Mario

          That was a pathetic pump and dump, SPY was red for what, 1 minute? Central bank bid is unstoppable.

    2. ted

      Folks, I cant say this LOUD enough. The correction is OVER. The market is taking off, and most of you are like deer in the headlights.

  1. AlexP

    Gary, these moves (commodities & SPX up towards daily cycle highs, USD down into half cycle low) look all like a typical “buy-the-rumor-sell-the-news” showdown. I’m also afraid that all these spikes will look like shakeouts in the hindsight ๐Ÿ™
    anyway… we’ll see …

    1. mike trike

      I bought more SLV puts today. I need to hedge my long positions in junior miners. I don’t trust any price hikes before FOMC. Usually the price crashes right after.
      I think the bear market is over but I will never bet against the commercials.
      If this is a repeat of 2010 then commercials will cover shorts into strength which will result in a price spike higher.
      Otherwise silver will have a correction down to around $15 before resuming higher.

      1. AlexP

        I agree with you, Mike.
        I also think the big bear is over. Yet, USD in an yearly-cycle advance raises the risk for commodities to get into their intermediary cycle decline sooner.
        If, to this context, you add what you just mentioned on FOMC aftermath, then I think you did quite well buying those puts.
        Mind though to the Theta effect on them. I personally prefer to write puts [on SPY] just to put Mr. TIME on my side ๐Ÿ™‚

        1. mike trike

          I have never done any option writing, Alex. I guess it is something I should look into. Would be nice to have time on my side with options!

  2. Trond

    The short term head and shoulder formation in silver got invalidated, followed by the vertical pop by traders that previously saw the formation, positioned to short it, and when it failed had to panic cover. It is always at least a 30% such patterns will fail and more if the neckline is not broken.

  3. bill

    A fine example of WHY I never play on FED day lol… ( sits back and watches ) waiting for the right time to buy ๐Ÿ™‚

  4. AlexP

    I just rose my protective stop into a slight profit, just in case …
    thus I’m sure I am not losing on the trade, even though quite unlikely considering the context

    1. Johan

      I wouldn’t call that a down-trend, only consolidation after the monster move up. Huge bull flag is what it is in my view.

    2. AlexP

      Yes, Trond, and it will deliver a MONTHLY SWING LOW today or tomorrow the latest by rising above 98.44 ๐Ÿ˜‰
      This alongside the weekly-trendline breakout will confirm the Yearly-Cycle advance of USD ๐Ÿ™‚ ๐Ÿ™‚
      ….just as I’ve kept mentioning and warning

      1. bill

        Great and a major advance to the existing recession which is now taking on more steam. Id be very careful of what you wish for.

      2. Johan

        Hey Alex,

        lucky I didn’t follow your warning that the USD was going down till X-mas from a couple of weeks ago though, but instead BT more at the lows:).

  5. Galen

    You would think the Fed would be chagrined to have to come out time after time and say — not today people , but watch out for next time! Who are the fools here?

    1. Aida

      Are you expecting stellar earnings on Friday morning? Average expectations are .01/share. On the TSX, ELD finally touched the 200dma at $5.49 , then retreated heavily. Perhaps will cross it upon earnings release.

  6. Doodoo

    That sure was an ugly candle on GLD and SLV today, I wonder what will happen to them in next few weeks – any ideas? I am still holding my gold miners ……for now.

  7. Eri

    How is that dollar scenario of yours playing out for ya Gary?
    I mean, you were telling me dollar looked horrible, entering bear market and all, while i was saying dollar was looking very good technically speaking.
    Your prediction was dollar at 92 on the FOMC, remember?

    1. Johan

      I agree Gary,

      I thought you had all the right scenarios in play whilst you were dollar bullish, but then you suddenly flipped to bear for some reason – I sked you then why. Just looking at a chart and a somewhat lower low can’t be sufficient to change the outlook on such an extremely basic asset in my view. After all the USD affects so much of the other markets too.

      What is your scenario now plz?

  8. ted

    Ha ha! I loved hearing all the market shorts today waving for joy when the market had a midday correction. Too funny!

    1. Johan

      Well, not very strange that shorts were happy, I expected continuation down too.

      That was a thoroughly surprising reversal in my view. Are equties really this strong – amazing.

      Normally equities rise with start of interest rate hike cycle, so who knows, maybe makes sense…

      1. ted

        You are going on some rule, that if everyone assumed to be the case would be on the same side of a trade. Best to think like a contrarian. Lots of people hate this bull market. Hence, they will miss one of the biggest bulls in their lives.

  9. JT

    Nice call on the gold & silver rug-pull AlexP. We’ll see what GDP brings tomorrow. NFP next week will be another huge data point for Yellen & Company.

  10. David

    So it broke out of a ‘bull’ flag only to come crashing down.
    It did exactly what everyone least expected.

    1. gary Post author

      It’s just stretching the daily cycle a bit. It’s doing what I originally expected. They did manage to fake me out with the early morning pop though.

  11. Don

    It was a confusing day today with plenty of manipulation going on. Goldโ€™s morning strength evaporated after a FED meeting that changed nothing. SELL!! Stocks were manipulated upward after initially being manipulated downward. The US dollar was manipulated upward in a big way and now has the shorts scrambling to cover. It was a crazy, but very profitable day for the manipulators.

  12. Don

    It was a confusing day today with plenty of manipulation going on. Goldโ€™s morning strength evaporated after a FED meeting that changed nothing. SELL!! Stocks were manipulated upward after initially being manipulated downward. The US dollar was manipulated upward in a big way and now has the shorts scrambling to cover. It was a crazy, but very profitable day for the manipulators.

  13. David Silver

    Again:
    Crude/energy UP
    Metals/miners UP
    US Markets UP
    US Dollar sure faked me

    Long Crude and EGO.
    Was gonna rebuy the open in TWTR but was so caught up with Crude!

    PS. Take a look at the volume and daily candles in $WTIC, $SILVER AND $CRB, yum yum.

      1. David Silver

        Believe me William I am so overloaded in crude longs its not even funny? then when I seen the fire sale in my fav miner EGO I just had to nibble on her for keeps since I let her slip away on 10/21.

        Record day for me today my man.

  14. William

    XLE just put in a “weekly hammer”…if this can hold true till the close of the week, XLE, ERX would be bullish next week!!! Seems like these should be the game plan for next week!

Comments are closed.