My Precious!

As there is nothing new to be said about the equities side today we will leave things where they stand (i.e. short with our stops above the respective long inflection points) and wait for new instructions. Instead let’s focus on precious metals which all seem to be coming into sync today. Coincidentally Gollum happens to be visiting the evil lair, so let’s see what he’s got to say about it:

Alright, that makes sense – as usual top notch analysis!

Here’s gold still testing everyone’s patience near the 100-day SMA. Yes, we have seen this song and dance before and I expect volatility to make a jump up here shortly. Excellent inside day candle today which will be effective starting after today’s close. If you don’t know the rules then point your browser to my handy cheat sheet.

Platinum in a similar configuration and we do have an RTV-S today as well, which I however think has a snowball’s chance of triggering (below yesterday’s lows). Which however puts this inside day into perspective – I’m open to both triggers by the way but the long side would be preferred. Lazy as I am I simply enjoy riding the ongoing trend.

Silver – not to be outdone is also gracing us with an inside day. Yesterday’s hammer setup is not going anywhere (failed hammer or regular one) but obviously today’s tiny range bestows us with an excellent setup tomorrow as our stop will be tiny, thus allowing us to increase our position size.

I hope you understand the concept of R (risk) – we rats use the stop->entry delta as one unit which determines our risk in ticks (or pips). Then we use that to calculate the contract size that would get us to a loss of 1% of our trading capital. There you go – that’s your position size – we stole it from  Ivan Krastins and he calls this method Protect R.

More goodies below – secret decoder ring required:

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Cheers,