Don’t even get me started on all the drama on the equities side – I had an inkling there would be a shake out but all this uncertainty seems to have completely derailed this year’s Santa Rally. Turns out the market doesn’t much favor the prospect of a potential economic melt-down – who would have thought? Certainly not our esteemed elected representatives in Congress. There is little edge in picking sides in equities over the next few days – the name of the game is volatility and it’s almost impossible to predict which way the whip will be cracking. Best to stay out and focus on other markets.
As you know I’m taking a few days off so allow me to breeze through a few setups I was able to dip up today. Besides I promised Mrs. Evil to not look at any charts and if I get caught I’m in a world of hurt. Here’s copper which is looking very juicy as it’s just reversed through its 100-day SMA (which is still rising). A pop above the 25-hour right above would be my signal to grab a few longs here.
Crude also looking irresistible as it’s above its 100-day SMA and may just pop above that diagonal resistance line it has been painting for the past month. I guess you know what I’m thinking – long with a stop below the SMA – confirmation is at 92. You can of course wait until the diagonal gives way – all depends on your style and risk tolerance. I would not think about a short unless it drops back below the 100-day again.
Two more for my intrepid subs:
More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
Natgas – yes, she’s a cruel mistress but seems to be well behaved near her 100-day SMA. I’m long with a stop below the SMA, but I was lucky with the entry. I suggest you wait until the 100-hour is being conquered. I would not get short unless it drops below the 100-day again. As usual let me implore you to only take on a small position here.
Gold!! It’s gooold!!! Has been pumping sideways and I’m long here with a stop below both short term SMAs. Simple setup and if the SMA gives way then I’m out and probably won’t touch it until I see a better low or a better long entry.
Have fun and keep it frosty – things are way too emotional out there. Fade the noise – focus on your charts. And yes – play it small!
This entry was posted on Wednesday, December 26th, 2012 at 2:14 pm. Both comments and pings are currently closed.