Time To Cash Out

I don’t really have much to say today on the equities front. The tape is flailing around just as expected and there’s nothing for us to do unless we paint a meaningful correction or progress upward toward 1390. We do have however two new profit targets in the Evil Speculator commodity pit – and for us stainless steel rats that’s always a happy occasion:

Silver has pushed outside both 2.0 BB bands (i.e. 25 and 100 days) which means you thank the dark Lord by sacrificing a chicken (devouring a chicken salad from Whole Foods is acceptable) and immediately proceed to taking profits.

The weekly chart also suggest some impending resistance and if you are a short term trader you want to be out here for sure. However if you’re in it for the long term then holding some lottery tickets into 45 is absolutely an option. But let me warn you right now – the journey will be bumpy so you better make sure you have the staying power.

Not sure how many of you guys grabbed that wheat entry a week or so back but we are now near target as well. Since it’s a pretty small (and less liquid) market I would not want to overstay my welcome and start taking profits now.

If you have been following my work for more than a week then you probably see why the weekly chart strongly supports my view. We have a confluence of three factors here – the 100-week SMA, the upper 25-week BB line, and there’s that old (but admittedly now expired) NLBL. Sure we can push higher here and if we do it may accelerate – but first we’ll have to overcome a lot of hurdles here.

So this is what I suggest – be out here and watch wheat for a while. If it pushes above 680 then take a long entry with a stop below the 100-week SMA. Expect a retest and expect having to take this entry several times as it’ll try to shake you off. IF it manages to touch 700 then I think we could be golden here into at least 800 and most likely much higher. IF of course is the applicable word.

Since I have only one measly entry today I may as well post it in the clear. Natural gas is back at its support line – very clean/easy entry here. If she gives then we probably drop into 2.35, so don’t be afraid of turning that trade around if you’re stopped out. Use that diagonal on my chart for placing your stops. Again – a pretty easy setup and the more touches we get on this rising diagonal the higher the odds it’ll be good for a long entry.

Cheers,