The Big Churn

Alright, clearly we find ourselves stuck in yet another sideways summer churn and if we’re not careful we may just turn our trading accounts into green butter. Or worse: margarine! In case you wonder (and I’m sure you are) I actually didn’t lift that pic off of Vivid’s Swedish edition (unfortunately my membership ran out). No, it’s actually from the 2014 Eurovision Grand Finale. The music really sucks but their rather well rounded performance has convinced me to explore my hitherto undiscovered Slavic roots. 

In terms of technical context we don’t have too much to work with. Our best guide IMNSHO is the hourly which has us bouncing around in some sort of sideways pennant. As we’re now painted new highs that VIX Sell Signal I highlighted last Wednesday has lost much of its splendor. A correction is of course still a possibility – as it always is. However a low volume market environment which registers continued all time highs is not exactly the setup for a 300 handle drop here, if you get my drift.

A quick stab lower – sure! And that’s what we seem be doing right now. If we breach the 100-hour SMA and touch 2176 then I’ll be watching the Zero for clues to take the elevator back up. But remember – it’s August and it’s Friday. Don’t hold through the weekend unless you’ve got several R of profits under your belt and can afford to lose whatever you’re leaving on the table.

I’m really kicking myself for missing an entry on gold yesterday. So I’m perfectly willing to convert to any religion which delivers me another dip lower toward 1345. I’m serious about the long term prospects of gold. That daily panel is seriously coiled up and we may see a massive squeeze higher here EOY.

If you take a peek at the long term panel then you may realize what all the hubub is about. You know what it’s doing right now, right? Building context ladies and leeches! It may go up or it may go down but the more it sits below the 1400 mark the harder it will be later to challenge that 100-month SMA, once broken of course.

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Alright before I sent you off into the weekend a quick reminder that..

… there be no butter in hell!!!

Congregation dismissed – enjoy your weekends!