81 thoughts on “CHARTS OF THE DAY

  1. pepe le pew

    Gary, SIL has dropped to all time lows this week as silver miners were taken to the woodshed. Capitulation? Or leading silver downward in the short term?

    1. Gary Post author

      I want to see silver make at least a lower low and confirm the intermediate cycle as being on week 20+. If gold can hold above it’s low of 1045 when silver makes a lower low then we will have the conditions in place for a final bear market bottom. In elliot wave terms gold would be in wave 2 of a 5 wave advance off the bear market bottom.

      Unfortunately this is just how the majority of traders think. When price is oversold most people are bearish, when they should be bullish. As you can see in the silver chart the time to be bullish was when the stochastics were low and bearish when they were high. That means traders should be extremely bullish right now, But our emotions won’t let us choose the logical path. We have to choose the emotional one, and emotions never made anyone any money.

  2. Chris

    Yes, SIL just broke down. And its funny, gary said these rally, but Stocks plunge. That doesnt happen Gary. So you must reconcile this conflicting views.

  3. Walt

    Silver is gold’s crazy sister. If you think trading gold is tough, try trading silver.
    You’re right though , when silver goes up next time , it will likey take gold miners up with her. No idea how far though

  4. Walt

    Look at the silver chart . If get a serious move down here , like the one from feb2014 to nov2014 , that would look like the final low to me in March 2016 .

  5. AlexP

    I have never bothered with silver; unlike gold and stocks, silver has also been manipulated materially throughout history….I personally do not see any reason to trade silver.
    Maybe people feel tempted to trade it because it trades with returns at a multiple to those of gold thus being like bulb-light to flies but otherwise I cannot understand any interest in it.

  6. Dan

    I’m just going to hedge my physical silver here. Miners crashing does not bode well.

    Enough of these bottom calls in commodities. Gary has kept doing it for months now.

    Oil and stocks fading from overnight AGAIN…

  7. AlexP

    Oil bottom is particularly difficult to sniff because it is not a mere commodity (gold, cocoa, grains, coffee, hogs or whatever), it also makes a GEOPOLITICAL WEAPON.

    It is wise to stay away in general from highly volatile assets and in particular altogether out of assets which have been proven prone to un-natural outside factors (silver, oil).

  8. Gary Post author

    I can also say with absolute certainty that this is not an ICL in stocks. It’s either a half cycle low in an ongoing decline that will roll over soon…. or the PPT is trying to prop up the market ahead of the FOMC meeting and that could turn it into a daily cycle low.

    That would just make things worse though and mean that we have another complete daily cycle still to go before stocks find their final ICL. And the longer the powers that be try to hold off the natural move down the worse it’s going to be.

    1. Jacob

      Great calls Gary, last week you called this stocks down leg, and the bounce we just had to just be a bounce and not a BTFD opportunity, and I just woke up to red everywhere in stocks, and now this report on silver to rise, it’s up 2.6% on my screen. Really happy I found this site, also for the other posters, I’m actually making money now (and understanding markets better). Big up Gary, I might have to subscribe

  9. Walt

    If the stock markets stabilize here going into February , you will most certainly get another 25 basis rate hike by the fed at their march meeting . They will use the confidence seen in the markets as a confidence game to move rates up . They will say , ” see , we raised rates in dec and the markets took it well , because its a healthy economy “.

  10. Walt

    They know , if things get ugly now , they have little room to cut rates, so they are raising rates to have room to cut next year , when things will finally get ugly

  11. ALEX

    Gold bottomed first this past summer at JULY 27, and it didnt “Wait for Silver”. It moved higher and Silver went sideways at lows , then bottomed later in August.

    Gold just bottomed recently , formed a triangle, and broke out higher above the 50sma. It just doesnt look to me like Gold is waiting for Silver. Gold seems to be leading the way again.

    1. Gary Post author

      I agree. I think gold has probably bottomed and once silver bottoms the entire sector should deliver a nice rally.

      1. Jacob

        Hey Gary, if shares keep sliding lower, the only option they have is reverse course andQE, so to me if shares go much lower, surely gold has put in a final bottom? Or do you think it’s a two stepper, one step to stop raising rates (and shares rise again) then shares drop again with gold and then QE?

        1. Gary Post author

          If stocks crash yes they will have to restart QE and gold and commodities will have bottomed.

    1. Gary Post author

      I think we are pretty close to a bottom. Realistically gold isn’t going to go through that massive support zone between 1000-1030. So there’s very little downside left and silver is 20 weeks into an intermediate cycle. There might be 1 or 2 more weeks to go at most.

      Once the bottom is in I think miners will rally at least 70% and maybe 100% or more. So I don’t know if it’s going to be that important to try and dodge another week or two of losses. You probably wouldn’t be able to pull the trigger at lower prices anyway, so I’m going to say you might as well just hang on and sell when the weekly stochastics reach overbought in a couple of months.

  12. ALEX

    Just a side note ( an F.Y.I.) , the clock on this site says that I posted at 2:17 P.M. – I posted pre-market.

    1. Gary Post author

      Yeah I don’t know what’s up with that. The same thing happened on the premium site. might have something to do with a recent word press update.

    1. Gary Post author

      Stocks are either forming a half cycle low (highest probability).

      Or the PPT is going to try to prop up the market into the FOMC meeting. If that’s the case then this would be a full daily cycle low to be followed by an even more destructive move down into a full ICL in March.

      The longer they prevent the natural forces from completing the worse they are going to make it. Before it’s all over this left translated intermediate cycle has to drop below the Aug. low before a final ICL can be struck.

        1. David Silver

          US Indices may have ICL on us (swing low)
          Surpassing for the 1st time rhe previous intraday high

  13. ChrisG

    Gary, I meant you said stocks plunging in few weeks, but also said oil bottoming and rallying. This contradicts each other

    1. Gary Post author

      Oil and stocks will probably find their ICL’s together. I’m not looking for that bottom until the last week of January or maybe even the first week of February.

    1. David Silver

      Awesome job Alex!?
      Hallmark Wiilliam J Oniel cup and handle
      Textbook breakout
      Seen it flaah on my stockchsrts.com radar off and on for past few weeks?

  14. Lil' Ricky

    With respect to oil, what do you mean by “close to popping”? A 50% rally off yesterday’s low would put oil around $45… that’s a giant gain, but still would leave oil at a level that is death to producers and that no one imagined slightly over a year ago.

    I guess my point is that even if the price “pops” the sector is a complete mess. I think we will have to see a slew of bankruptcies before this all ends.

    1. Gary Post author

      The 40 week moving average is at about $50. That would be the first stop and then continue to move higher after that. Once the 3 year cycle low is finished oil will probably never see these prices again in our lifetime.

      1. Lil' Ricky

        Thanks for your reply.

        I firmly disagree with your outlook — I think prices will stay depressed much longer than is generally anticipated — but appreciate your response.

  15. victor

    Hi Alex, you were right telling at 10.20 SLP is not expensive, I was not ready, bought it for 10.50 X 233 shares. Frankly I didn’t study the company just rely on you as you know better…
    also from yesterday:
    January 12, 2016 at 8:31 pm
    Thank you Alex, SLP earnings on 14th, let see what happened…, quite quiet today thogh…, I still follow closely RUBI, will buy it again before earnings, as I said my close relative working in IT company providing IT solutions for RUBI, very positive abt it…, will see.”

  16. Bill

    The action lately reminds me of the Eddie Murphy and Dan Aykroyd movie where they ran orange juice down and then back up and made millions and the rest all fell out on the trading floor.

  17. tulip

    Full Default of Global Debt Coming-Andrew Hoffman
    By Greg Hunter On January 13, 2016 In Market Analysis 1 Comment

  18. mm

    Gold up .23% miners not doing much considering Golds move … been the mantra lately. Miners foretelling this move will be shortlived?

  19. David Silver

    US Indices:
    Deja Vu?
    Same daily formation
    PPT anyone?
    Last two intraday lows holding in lock step
    Early false breakout high
    Range bound but still bullish

  20. David Silver

    Crude basing?
    Yesterday’s intraday 52 week low holding
    Basing wheras US Indices falling
    Divergence in the making

    1. Gary Post author

      Yes things are too volatile to chase moves. the only way to make money is to try to anticipate moves. Of course if you get it wrong it will be painful.

      This is a market that is better left alone.

  21. David Silver

    COMP and RUT LOWER than Monday
    S&P and INDU nearing
    Clive shorting emerging markets
    Financials IMHO public enemy #1

  22. AlexP

    Good evening, Victor!
    Back to my computer
    I don’t know about RUBI anymore…it’s lost its lackluster for me.
    I think it would be dangerous relying on technical impressions or even financial of insiders unless they are telling something of a catalyst not yet disclosed onto the market – a new product/service, restructuring program etc.
    Otherwise, a trader risks to “fond in love” with a stock – a doom to one’s financials.

    PS: eventually it looks that even SLP is getting its power in front of such a strong bearish tide …
    I am sticking to my stop-loss though, now being raised to 9.60

  23. David Silver

    Ever hear of manipulators and bashers??
    All you have to do is like you do is go opposite if me ?
    I just became a subscriber recently so no need for me to be here……. Time to go incognito my friends ✌
    Good luck y’all ?

    1. tim

      just trying to help you, step back and look, your going broke like this.
      do one thing if you want a winning trade, watch xon and cvx and the etf xle that holds them, all of them hit new lows on aug 24 when oil bottomed in aug, all had a good gain for a while after that.
      wait for this to happen again and you can buy anything to do with oil and hold for short time for a good gain.
      if you would do same with gdx you can make good trades with a lot less guessing and make money.
      your broker won’t make as much off you though.

  24. Bill in Tokyo

    On the monthly $WTIC chart, it’s best to use PPO than MACD, due to the wide price change – PPO is the % base of the MACD, so proportions are kept, same as using a log chart shows price movements in correct proportions.

    If one uses the PPO, then the divergences disappear. Although there is a small pos div in the PPO histogram.

  25. Chris

    Go look at RUT. SInce 2009 bull market, this clearly have finally broken its LT trend. It made lower low. Bear market. Alex, you got to realize this and stop saying market gonna rally much.

  26. AlexP

    VICTOR, BLUE, I do not like the status of the general market and also how SLP has reacted –> it is prudent to dump it under these market conditions and with weakness starting to creep in SLP too.

  27. AlexP

    the profit in SLP has covered the cumulated -1.76% loss in the 3 pilots initiated last week and produced also some extra profit

  28. Blue

    Sold my total SPL position of 250 shares 11,02 usd earlier today, a nice profit of 11,50% in a couple of days.
    Thanks AlexP
    I will follow SLP and buy when it comes back down again.

  29. Will

    Yen exploded, equities imploded
    Yen’s next immediate weekly target at 110!!!
    It’s a WWW (wild wild world)


  30. Bill J.

    Ok, in order not to confuse Will = Bill J. going forward.

    XAU daily & weekly – looking to “attempt” another reverse h&s bottom pattern…if the market doesn’t trick us again!

  31. Bill J.

    St Barbara in Aussie, the best performing gold miners since its bottom in 2014, returning 2400% and counting!!!

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