Are You Ticklish?

What’s wrong – are you ticklish, big boy?

Well, you must be – ’cause it was just getting interesting!
[amprotect=nonmember] Charts and 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 subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Our current net-lines buy signal on the spoos hits at 1330.25 – and where did we turn? 1329.5 – a mere three ticks away. Watch that level –  and don’t be short once we breach it.

Also, take another look at this chart and draw an imaginary line all across our current NL buy level. What charting pattern do you see? A little pointer – its name resembles that of a popular dandruff shampoo…

What may not be immediately apparent to you guys is that the overnight gap jump skipped over a deep volume hole that may have been tougher to breach in regular trading. Otherwise we may have crept up to 1320 and then fallen back. The way it is now that 1320 mark will probably serve as support – unless something really ugly happens.

It won’t be smooth cruising for the longs either however. I see volume past 1330 drop off like a continental shelf. So, IMNSHO this is a good spot to take profits and to observe the situation a little bit. If we push above our net line buy level at 1330.25 we may accelerate higher – but again, that may happen after hours. So, this is not an easy trade – many folks will look at this charting pattern and want to be long, which is why I expect there to be a bit of a shake out.

Many times what you’ll see with [our mysterious pattern] is a fake out drop below the neck line and then, only after having shaken out the weak hands, will the tape advance as previously expected. It’ll be a short trading week (no trading on 4/22) and it’s possible they’ll tease this thing out until Thursday and that we won’t see resolution until Monday.

Per my recent post on volatility – we dropped to slightly above 14 this morning. Think about this for a second – a mere two days after S&P insinuated a downgrade of the U.S. AAA credit rating. So much for the news – my dear stainless steel rats – I hope that lesson is slowly sinking in – I only have been preaching it for three years 😉

Anyway, I can’t wait for 13 – seriously – it’ll be this year’s lucky number. If we push toward 12 I’ll be literally backing up the truck. Patience, grasshopper – patience… let the tape come to you.

Yes, Silver again – now, I expected a reversal from outside the BB several days ago and got stopped out. Not particularly eager to try my luck again but it’s worth noting that the crazy metal has now officially gone exponential. IF we are so lucky to see an inside candle I’ll be short again. But chances are this thing either pushes higher, shaking out even ore shorts – or turns on a dime and you can’t get in. Another reason I rarely trade PMs these days – much more easier victims out there and I am for sure not going to try to force it. Don’t get married to an idea or a trade – don’t have an ego about being right. Guaranteed way of becoming broke.

Cheers,

Mole