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Market Update For Purists
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Market Update For Purists

by The MoleJuly 5, 2016

It’s that dreaded day after Independence Day. The weather is gorgeous and I don’t really feel like trading either. The thought of just phoning it in had occurred to me, but as the new month just rolled over I thought I may as well take another peek at our monthly charts. Which uncovered quite some interesting perspectives that I’m eager to share. But no worries – we’re keeping it light and easy today. Consider this a purist’s approach to market analysis as we’re going to ignore everything but Net-Lines.

Net-Lines

So what are Net-Lines? Before we get into the thick of it let’s quickly cover the concept of Net-Lines, which is purely price based and as such I don’t consider them ‘indicators’ in the traditional sense. There are in fact two types of Net-Lines, one for the buy and one for the sell side. The rules are pretty trivial:

Net-Line Buy Level (NLBL): Wait for three consecutive lower lows, then take the high of the first candle as your NLBL. The push above that high is your signal to go long.

Net-Line Sell Level (NLSL): Wait for three consecutive higher highs, then take the low of the first candle as your NLSL. A breach below that low is your signal to go short.

That’s pretty simple, isn’t it? No exotic mathematical formulas or price derivatives which may require a PhD in quantum physics to fully grasp. The whole idea here is to identify price inflection points as well as trending behavior. If you’ve been visiting the lair for a while then you know I have been using Net-Lines in the context of our market analysis for many years now.

2016-07-05_spoos_monthly

So let’s get to the goods. Usually we focus on short term and daily charts but today we’ll be exclusively looking at monthly panels. The first one is the E-Mini and it’s the one that actually inspired me to write this post. If you look at the price action over the past five years then what do you see? A lot of red lines below it, correct. Those are monthly Net-Line Sell Levels and we’ve been trading above them almost the entire time. That is bullish of course.

However, what is it you are NOT seeing? Green Net-Line Buy Levels (NLBLs) – because there had only been one since summer of 2010, and it was quickly taken to the woodshed. A lack of NLBLs indicates strong trending price action which is unable to produce three consecutive lower lows. On the inverse however we see a ton of Net-Line Sell Levels (NLSLs) as the direct results of repeatedly producing three consecutive higher highs.

A New Market Phase

Now clearly something has changed in the past year or so. Because in the course of one year we have produced not just one but five monthly NLBLs. And we keep knocking against it, thus far however all those Net-Lines have been coalescing into a pretty solid wall. There are two ways of interpreting this of course. One – we’re building long term resistance which will eventually drag us much lower. Two – we’re in a sideways correction and if we manage to push above the wall near 2100 then it’s happy days again. I think both perspectives have merit as I have long learned that markets can remain irrational for much longer than most could imagine.

But the take away message for now is that there is long term bearish potential, as long as the wall stands. Should it be breached then the bulls may just get another lease on life. Which makes this current market period and especially the coming fall season a very exciting moment in time.

2016-07-05_gold_LT

But we’re just getting warmed up. There’s a lot more. Here’s gold which, not surprisingly, has been doing the exact inverse over the past four years. You see a lot of green NLBLs which are never so much as being challenged. Then early this year gold finally manages to push above a monthly Net-Line Buy Level and remained above it. And now it is in the process of breaching its upper 25-month Bollinger and there is nothing but air above.

2016-07-05_silver_LT

We see an almost identical perspective over in silver of course. A sea of unchallenged NLBLs and then earlier this year a pop above one which it managed to sustain. There may be another shake out on the horizon but to me this clearly looks like a floor pattern. But ask yourself this – which monthly indicator would have gotten you onto the long side ahead of that NLBL? 

There’s more below the fold – please step into my lair:

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About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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  • https://evilspeculator.com Sir Mole III

    Clearly everyone’s eager to get back to work today…

    .

  • Ladywandering

    This post is a keeper for sure, great perspective

  • Time Bandit

    I be here Boss! Yep it looks like “The Times they are a changin”.

    On the home front, I proved that sometimes my best trades are the ones I didn’t take or in this case didn’t keep. My decision to go to cash over the long weekend proved to be the correct one or just lucky. Either way, I’ll take it. 🙂

    Speaking of which just for the hell of it over the weekend, I looked back 9 Months on my Hourly Charts to see what the ratio of gaps from Friday to Monday regarding my current stable. (I counted Gaps that were in favor of holding my positions and against holding my positions.) I found that Crude was pretty much a wash at a 51% rate in favor of holding. Basic Materials was 56% in favor of holding, Financials were 59% in favor of holding and surprisingly the Q’s were 68% in favor of holding.

    I’m not sure what if anything this proves however based on today’s results, I’ll continue to go to cash on Long Weekends in the future.

  • nyse

    Great post m8

  • ridingwaves

    Crude definitely went your way and that ugly manufcturing report earlier is not going to help it…fell out of a triangle so to speak…

    I have a buy order for SGY again 12.05…

  • kudra

    still holding on to the GDX short. looks like the morning gap and go got sold off.

  • Mark Shinnick

    Yeah…buying JDST this morning.

  • Billabong

    Looking at support just below 46….

  • Time Bandit

    The funny part about this is that I’m going to see if the next couple of hourly candles says that this is “an only fooling tape” and if it is, I might reopen a couple of my long positions before the COB. OTOH, if this move looks like it might have some legs, I might go short. It’s too early to decide yet.

  • kudra

    nice. I just sold out of the bulk of the position for a gain (sold DUST @6.80). I got a reprieve and took it.

  • Billabong

    Tried shorting a couple of miners when the morning lows failed … not available. Must be a lot of folks shorting the miners.

  • kudra

    gold still very green. miners red. hmmmm

  • Billabong

    Normally, miners lead the way. On the 24th there was a buy signal for GDX. From that closing point, GC has added 1.96% and GDX 8.3%…

  • kudra

    GDX recovered $29 and I’m all the way out of the short. ill advised trades that yield tidy gains are dangerous to trading psyche. I’m making sure that the gain doesn’t encourage bad technique.

  • Time Bandit

    Sounds like you’ve come a long way from being a “babe in the woods” on a couple of really bad plays awhile back. Good for you!

  • kudra

    i’m trying, TB. You fine folks have been instrumental in my progress. Many miles to go.

  • Billabong

    Money center banks in trouble …. new LODs; BAC, C, WFC.

  • ridingwaves

    Italy is going to rob pensioners to save banks and go outside of the EU mandate to do it..
    thus the reason gold will continue to rise
    shorting Italian bonds might have been a good option last week but probably crowded now…

  • ridingwaves

    the ole fed speaker on tap metals beat down…Williams is done, back to regular scheduled program

  • Mark Shinnick

    Have stood aside JDST. Might with tvix too, other duties today.

  • ridingwaves

    with unequal liberty and unequal justice for all….

  • Mark Shinnick

    …this is the jungle baby.

  • ridingwaves

    Watch or take a small gamble on ANY, I’m in already but it looks to be about ready to move higher, targeting the 100sma at 1.21 for half exit, then let rest play out…it’s the jungle baby..

    I think you can get in at .85 if late to cover shorts scramble to get out but they should be out already or they are just plain stupid…

  • mugabe

    Shorting the long bond not working out too well for some folks. It’s much easier if you don’t try to short the strongest stuff unless you *really* know what you’re doing,

  • CandleStickEmUpper

    Mole, I was curious how you painted that first ES monthly chart. Im assuming it takes into account the rollover/ small price change after 4 months? I supposed the small price change during rollover is negligible on a monthly candle. Wondering if SPX chart would be more accurate in that case.

  • mugabe

    time to call the Judean People’s Front

  • mugabe

    am currently getting taken to the woodshed on XLE:) at least I entered on open today and not close Friday.

  • mugabe

    those net lines are basically a form of trend following – nothing wrong with that, of course.

  • mugabe

    you’ll make fewer mistakes if you follow written rules / a checklist.

  • BKXtoZERO

    like me LOL

  • pepe

    Took a [stupid] hit on TLT. Bought SSO puts Friday. Fled Mexico City for Puerto Escondido to lick the wounds with Mezcal. Looks like it works. 😉

  • https://evilspeculator.com Sir Mole III

    Fue una buena elección – ¡que te disfrutes!

  • https://evilspeculator.com Sir Mole III

    It’s negligible indeed. You could totally use the SPX here and it wouldn’t change much.

  • ridingwaves

    watched the big wave surf tour last week on Internet, looks like a sweet place to lick some wounds..

  • https://evilspeculator.com Sir Mole III

    hay unas guapas en esta playa?

  • ridingwaves

    no, más una ciudad de surf

  • Mark Shinnick

    Posible de surf imán para las mujeres 🙂

  • mugabe

    amazing factoid:
    ‘At +0.25%, 1-month US T-bills have a higher yield than … 50 YEAR bonds in Switzerland, which have gone negative.’.

  • mugabe

    parece que no

  • Time Bandit

    What a deal! 🙁

    Reminds me of a few months ago when I had an unexpected windfall of a few grand. I thought just for the hell of it, I would go to my local bank to see what they could do for me with a CD. When the person told me what the bank could offer, I had all I could do to restrain myself from Yelling – YOU CAN’T BE SERIOUS! Needless to say, I declined.

    Savers continue to be fucked.

  • ridingwaves

    savers, the other white meat…..

    looks like 2077spx is in the cards..

  • Mark Shinnick

    Bailed on tvix.

  • Time Bandit

    Just re-opened Long Position in Basic Materials XLB with fairly tight stop.

  • https://evilspeculator.com Sir Mole III

    Tight stops in this tape? Good luck! 😉

  • Time Bandit

    Well relatively tight for me. 🙂 Using hourly instead of daily.

  • https://evilspeculator.com Sir Mole III

    It’s insane frankly and clear evidence that the financial markets are broken. We have been kicking the can down the road for eight years counting now but it can’t go on forever. When you force speculation in volatile market environments and at the same time discourage savers whilst destroying your own currencies then you are effectively sawing on the branch you’re sitting on. Plus instead of regulating the big guys they have been coming down hard on retail which was not responsible for the financial melt down in 2008.

    It’s a shit show and I fear we will see large financial shockwaves in the years to come.

  • https://evilspeculator.com Sir Mole III

    Position sizing?

  • Time Bandit

    Staying relatively small (under 1% R) so I can sleep comfortably.

  • Time Bandit

    All this has been happening and you had one of the former Presidential Candidates Neurosurgen Ben Carson (who speaks like he’s been given a fucking lobotomy) say that “there was too much regulation on the Big Guys”.

  • pepe

    Amazing and just 1hr from my digs in the capitol.

  • pepe

    !Gracias – estoy disfrutándome como un cabron! 😉

  • Time Bandit

    Just went short 1/2 Position XLF (Financials). Put it all together and it’s just a little mixed chum bucket in the water to see if anything bites. 🙂

  • ridingwaves

    I’m going to one up you and replace large with HUGE

  • https://evilspeculator.com Sir Mole III

    puppets… I don’t even listen to that shit…. waste of my time, which is limited on this earth.

  • https://evilspeculator.com Sir Mole III

    Good man.

  • https://evilspeculator.com Sir Mole III

    como un niño con zapatos nuevos 🙂

  • BKXtoZERO

    Mole, Nice post on Net Lines. I knew you used them and posted many times about them. For some reason I understand perfectly now but didn’t pick up on it before. Either I just got smarter or you wrote more clearly. We all know that I didn’t get any smarter, so nice post!

  • Billabong

    I did a survey of local banks and credit unions on the 1st and they have started dropping CD rates. We’re going to NIRP one way or another. The long bond is on a tare since the 24th (Friday after Brexit) as compared to 5/10 yr. CDs are currently an ok place to park money with a minimum penalty on early withdrawal.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • kudra

    curious what made you go long the QQQ? Looks like you might wake up tomorrow to pain. I’ve been there.

  • Time Bandit

    I’m not worried about any pain tomorrow morning because I don’t get concerned about what equity futures are doing this time of night unless the moves are massive and they are not massive moves right now. Another reason I’m not concermed is that my position size is less than 1% R and my overall delta is currently offset by being short Financials at aproximately the same R Level.

    I had performed another back test on the drawing board in the Q’s over this past weekend. I only took this partial position in the Q’s today because although my lens said that it still qualified as a long, it was aleady a few days into this last run and the trade would be marginal at best. But by taking a partial long position today, I was able to either enter this trade on a sizeable dip that might end up being profitable or I’ll end up with a small loss and flip it to a short. No biggie, just part of the program.

    See ya in the AM. 🙂

  • mugabe

    I’m not sure about destroying currencies – look at inflation, or rather the lack of it.

  • mugabe

    Dunno about that .. if every time you lose you feel pain, then you probably shouldn’t be trading. It happens a lot of the time:)

  • ridingwaves

    Short-selling in Banca Monte dei Paschi shares temporarily banned

    wow, this brings back some memories of 08-09…..

    How Spain and Italys bonds remain over 1% is a mystery or is it just primary dealers forced to buy?

  • ridingwaves

    ok, were there, now which way?

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    this Market is a dawg, and I intend to ride it thoroughly.
    😉

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    ..as much as I like gold to be on fire.
    it’s in the too hot sector compared to the dollar, IMHO.

    http://stockcharts.com/h-sc/ui?s=GLD%3AUUP&p=D&yr=1&mn=0&dy=0&id=p67874146445
    -GG

  • ridingwaves

    it will be knocked down possibly tomorrow or on friday NFP print if it’s good….
    everything were seeing in the market is about maintaining confidence…..

  • Billabong

    I feel the same way on GC / SI … Too hot for me. Focusing ST attention on other opportunities. Little to nothing in the financial media on US banks…

  • ridingwaves

    some money flowing into bioland this AM and SGY is the gift that keeps on giving…

  • Time Bandit

    Opened 1/2 Position Short UCO. Have a mixed bag going on with XLB looking the worst of the bunch at this moment.

  • ridingwaves

    I like Billabong’s call on 46 for crude, long term support just below at 45.88 on WTIC

  • https://evilspeculator.com Sir Mole III

    I’m extremely busy today – not posting but watching the tape as I can.

  • ridingwaves

    this irks me greatly….The Fed and Treasury created this….I hope RE pukes and they eat it big

    The National Association of Realtors reported that Chinese buyers bought 29,195 properties worth $27.3 billion in the 12 months ending March 2016. At a median price of $542,084, the typical Chinese purchase was more than double the median U.S. existing-home price of $223,058, showing that the acquisitions were made by the burgeoning Chinese elite.

  • Time Bandit

    I can see that possibility on a daily chart. I expect to be shaken out once or twice before picking up another extended move on the hourly and my stop on UCO is around $11.45 or so. The daily has looked like shit over the past 3 weeks so it’ll probably take awhile for it to get its head right.

  • ridingwaves

    it was the daily I was charting…

  • Mark Shinnick

    Simon SPG has made new highs and DRV new local lows. Recall Japanese in 1980’s.

  • Time Bandit

    From last night:

    “I don’t get concerned about what equity futures are doing this time of night unless the moves are massive and they are not massive moves right now.”

    Remember that one to which I’ll add that Futures usually don’t mean squat in after hours unless you are actively trading them. After hours trading is a whole different game.

    I have no idea where my long Q’s trade will end up but my stop is pretty close to BE right now and I might be adding the second half of long position shortly.

  • ridingwaves

    yes….they took it in the chin…..hopeful of same outcome. Here in San Francisco they are bidding 400K over asking price, cash and then no one lives in the house…I walk by Zombie house’s on daily dog walks that have been empty for over 2 years….maybe my old fashioned thinking of a house is roof over head is stupid….I have a clue what ours is worth but laugh at the folly….my nut is so little why sell into higher monthly payments…

  • Time Bandit

    Well you can thank me for opening up my short. 🙂

    Two of my positions that were down are now up and one position is flat. And then there’s my short UCO which is down. In hindsight, I should have shorted right after the open on Tuesday Morning but I didn’t want to chase that big gap down but that’s a coulda, woulda, shoulda.

  • Time Bandit

    I was thinking exactly the same thing. The Japanese were buying up California with both hands back then and got whacked pretty good.

  • BKXtoZERO

    In DUST 5.8, stop 5.7,

  • kudra

    well-played, sir. QQQ bears got Lucy’d again.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • Time Bandit

    I know this is easier said than done but why not sell out to stupid money and then rent some place out of state with a decent climate temporarilly. Then you can buy it back at half price or less when it crashes down around them?

  • Billabong

    You’re TA doesn’t have 11 (+/- 0.20) holding?

  • Mark Shinnick

    In early 80’s I scrounged every penny I could to complete a unfinished 5000sf Malibu foreclosure left over from the Volcker 79 shock… over looking Madonna’s place. I had my scope and trigger trained on Sean Penn as he was firing-off wildly in their backyard a couple of times. Sheriff’s helicopter dropped in there frequently. Timed it perfectly; sold November 1989.

  • Billabong

    There’s probably 20K+ of us looking at the same support level and we may end up with a self full filling bounce.

  • Billabong

    Day isn’t over…

  • https://evilspeculator.com Sir Mole III

    Are there any metal fans left here?

  • Billabong

    Excellent … great to read a true capitalist story.

  • https://evilspeculator.com Sir Mole III

    It’s my blog for fuck’s sake – at least I’m letting you guys know 😉

  • https://evilspeculator.com Sir Mole III

    You’re either very old or were a lot smarter than me as a young man. In the 80s all I could think of was poon and how to get as much of it as possible.

  • Billabong

    I’m a fan!

  • BKXtoZERO

    FED beat down…. I own physical too long term

  • Mark Shinnick

    I really lived sort of that way. After 89 I laid low as a renter until re-buying at the RTC auctions 1993-94. That Malibu house could be had for 25% of my sale. I was tempted….but chickened out because it was < 5 years and I was afraid of some BS fraud claim… sort of dumb of me in retrospect.

  • https://evilspeculator.com Sir Mole III

    Not sure if you’re into the dark stuff but I came across the new Be’lacor album called Vessels. Haven’t been able to stop listening to it since – it’s absolutely brilliant and some of the best metal I’ve heard in years. And that’s saying something as 2015/2016 has had its share of awesome albums. Anyway, if you like it make sure to buy it:

    https://www.youtube.com/watch?v=F9o6sVU3myI

  • Time Bandit

    My current crude trades are being controlled by ATR and I’m now using the hourly as opposed to the daily for entries and exits. I get shaken out more often but I don’t have to wait as long to enter or give back as much profit before I exit doing it this way. There’s good and bad things going on here and there are trade offs no matter which way it’s played.

  • https://evilspeculator.com Sir Mole III

    I’m talking music mate 😉

  • ridingwaves

    I can’t as the significant other cannot and has never driven, she has a cushy state job with great bene’s and just hops on the muni into downtown. We will airbnb it when we decide to leave….great view of the city, entry to the bay and GG park……

  • BKXtoZERO

    Ha! LOL….. sorry. I am just foaming at the mouth, ignore………..

  • Mark Shinnick

    Ballsy, but agree. Keep tight.

  • Time Bandit

    Beautiful!

    I was living up north back in those days and I had a neighbor buy a home right at the tip of that boom. Within months after he bought that house he was so far underwater that he never recovered and the bank eventually ate it. The irony is that I heard that same home sold for big money in 2007 only to see its price crash again after 2008. . .

  • ridingwaves

    so your saying don’t go hunting with Sean Penn he has Cheney disease?
    timing was great, kudos to you…

  • Mark Shinnick

    Well, the most efficient rental income and poon was to individually rent each of the 7 bedrooms. It was a interesting lifestyle.

  • kudra

    did you hit it and quit above 5.90? that’s what i’d have done. counter trend scalp play. don’t fall in love with it. It’s a daily 3x etf afterall.

  • Tomcat

    I am a fan of ACDC, but not sure if you meant that type of “metal”

  • Mark Shinnick

    Who know’s what this guy was on but it wasn’t disciplined shooting for sure.
    You know….I let everyone know my thinking at the time….and some people bot anyway …with predictable outcomes.

  • BKXtoZERO

    I remember both of us getting hurt at pre-split prices in the 50-60 range equivalent rt now. Still in for the day w/ raised stop. Looking for better move than this.

  • kudra

    nice trade. you’re getting a lil momentum here as GDX looks like it want to touch $30, like its hyper-quick touch of $29 yesterday.

  • https://evilspeculator.com Sir Mole III

    Acadaca – of course that’s metal. Good for you 😉

  • https://evilspeculator.com Sir Mole III

    Maaannn, you were WAY ahead of me… 😉

  • BKXtoZERO

    Here is my new website if you guys are bored watching the MKTs all day. This is the ENS research that I have been doing on my health condition for 2 years. This is part of why I dropped out of trading. I’ve been feeling better recently and have a little more unfinished work at Stanford tomorrow.
    http://emptynosesyndromeaerodynamics.com/

  • ridingwaves

    the real move if it comes will be overnight on Thursday and Friday opening dependent on NFP print…this is usually when the big boys knock it down to discourage you from believing in it….the trend is still up and 1600 target of gold is in play now…

  • Time Bandit

    Out of UCO Short for a loss -.5R. I almost pegged the low on that one. 🙂 Going to wait awhile to see what if anything I want to do next on the black slippery stuff.

    Also added second half of long Q’s via QLD.

  • Mark Shinnick

    …it was really just application of the RE business model; Leverage.

  • Billabong

    I’ll check it out …. thanks.

  • Billabong

    UCO still holding a L/L L/H … CL looks like a hammer for now … hammering out the channel bottom?

  • Time Bandit

    Could be. I’ve already covered my short and am waiting to see where price goes from here.

  • Billabong

    Fed minutes release at 2pm … anticipate volatility.

  • kudra

    well it was a nice trade. i take it you didn’t sell in the mid 5.90’s.

  • kudra

    kudos on your QLD trade.

  • Mark Shinnick

    Buying DRV. Caveat emptor :/

  • BKXtoZERO

    for me, Old Ozzy, Black Sabbath, VH are about all that I do metal wise

  • Time Bandit

    Thanks Kudra.

    However, I misplayed Crude by being to slow to get short and should have waited for the next long play instead. This was a mistake. The markets are difficult enough and making trading mistakes causes the difficulty to increase significantly.

    I just took a 1/2 position long UCO and probably will get whipsawed now because trading mistakes often compound themselves.

  • Mark Shinnick

    Close to tvix buy….see what happens.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • Mark Shinnick

    Fear best served suddenly. When it drags on for too long, its like leaking pressure and normalcy re-establishes.

  • kudra

    were you stopped out? You should have been if you raised your stop above 5.70. even if u kept it at 5.70 it would have been hit already.

  • Time Bandit

    Could be my imagination but overall price action has had a strange feel to it today.

  • ridingwaves

    this will bring back some memories, the market simulates the title…
    https://www.youtube.com/watch?v=Fy7nKRUW7bE

  • Mark Shinnick

    Like its living in denial…and knowing it?

  • Time Bandit

    Yeah, kinda like that. 🙂

  • Mark Shinnick

    Well…this reminds me of everyone throwing money into spiraling asset hole where the exit door is shrinking in size all the time.

  • Time Bandit

    That’s some good tunes. Almost want to bring back the old days by putting on some head phones on and firing up a bone.

  • Time Bandit

    The problem is that most people are screwed because there’s no other place to put their money. That is unless you do what we do and be like Ninjas in an out of the markets.

  • Mark Shinnick
  • http://greenlander1.blogspot.com/ Greenlander

    Chinese purchases are skewed towards buying in gateway cities like LA, SF, NYC so a reason for the high median price. The bigger issue is that Chinese are trying to park their money outside of China even if overpriced bc of currency + political risk which ties back to the reason for buying in gateway cities.

  • ridingwaves

    yes, they were in my play list back then, some of first dates were sitting listening to AM radio and this would pop up…feel good tunes….

  • Mark Shinnick

    Yeah…they had exceptionally high production quality for their day.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • http://greenlander1.blogspot.com/ Greenlander

    Yeh exactly why I am staying out of equities for the interim!

  • Time Bandit

    As Popeye the Sailor Man says, “That’s all I can stands, I can stands no more!” 🙂

    Wound up flat on the day. Kind of a grinder. We’ll see what tomorrow brings.

  • BKXtoZERO

    I left half on, sorry, was too busy at work earlier to post.

  • Mark Shinnick

    Iconoclast

  • TerpFan

    Does anyone know of a script for the Net Lines, written for TOS?

  • http://greenlander1.blogspot.com/ Greenlander

    Do you guys have opinions on WSJ’s selling on strength and buying on weakness being useful as an indicator? Especially the activity in block trades…

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • https://evilspeculator.com Sir Mole III

    Nope – never used that. You?

  • https://evilspeculator.com Sir Mole III

    Patience grasshopper, patience. This is a very long term chart. Are you trading those? Nope. So show me a good ST entry pattern and we talk. FWIW – yes, the LT panel is very juicy.

  • kudra

    uh oh

  • ridingwaves

    I understand, the issue is they are blowing out American families whom are not crazy enough to get into a cash bidding war with funny money. Most of this money coming here is rotten to the core and the Renmimbi will need a 30% devaluation to stave off depression over there. It’s bs as the fed and current king Obama cooked it up by doing away with tax provision. So now Chinese pension firms can buy 10 homes on the backs of working American citizens.

    http://www.bloomberg.com/news/articles/2015-12-18/u-s-poised-to-lift-35-year-old-real-estate-tax-on-foreigners

    I’ll be very happy when the fed is burnt to the ground as the masses realize finally wake up to how the fed set in motion the biggest heist of American wealth in this century, they are evil pigmen and deserve tar, feathers, chains and balls…

  • http://greenlander1.blogspot.com/ Greenlander

    Yup this benefits the guys who have big portfolios who are net sellers now. They are making a killing. In terms of affordability, for me, LA is now behind NYC. At least in NYC you can live in the burbs and have a decent house and take the commuter trains in. California is an absurdly expensive place to live now.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb

    Aren’t you suppose to start with the big picture, and then work your way in?

    The daily.
    A full pullback to ~16.20 support would be nice.
    But I think a strategic long addition during RSI 70, would be prudent.

  • http://greenlander1.blogspot.com/ Greenlander

    I have been looking at it and when I have time, going to backtest it. I have noticed that sometimes before turning points there’s activity in the opposite direction.

  • http://greenlander1.blogspot.com/ Greenlander

    Yeh I took on SLV short today.

  • mugabe

    16.20? that’s a helluva pullback to wait for

  • mugabe

    ‘Many people are going to have to save more money, spend less in retirement, take more risk or a combination of the three.’

    A good article on bonds:

    http://awealthofcommonsense.com/2016/07/bond-yields-the-anti-risk-bubble/

  • Billabong

    I would be interested in your sample size and the results.

  • Billabong

    If it is a reversal, it may offer a good entry point. SI Support is around 18. With the current MOMO and BTD, I don’t think we’ll make it down to 18… SI could see a consolidation over the next few days.

  • https://evilspeculator.com Sir Mole III