Too clever by half…buy signals in the indices and metals

2010-10-6.gld

http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=6&dy=0&id=p23550335056&a=203282120

This is a buy signal in gold.  (And the other metals.)  This may be the beginning of a blow-off.  We would move our stops to 3% under yesterday’s low.  Depending on your appetite for risk (or desire for profits) this would be an add on place.

2010-10-6-spx

http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=6&dy=0&id=p23550335056&a=203282120

In our impatience to avoid a flushing action in the indices we were too clever by half in selling and now have to reestablish our positions.  We pointed out to readers that it was a trading tactic and recommended against it for readers.  Now you see why.

This is a buy signal in the major indices.  This wave refuses to die, or even to retract enough to allow the construction of a proper trendline.

This Post Has 2 Comments

  1. tmmcalon@gmail.com

    Hope the gold signal/movement stays positive for a while rather than the whipsaws we have seen in other instruments.

    Prof. Bassetti – What is your take on the price action in the QQQQ’s?………Tom Mc

  2. alp@hamzagil.com

    The second link Is also for The gold chart and needs to be corrected. Thank you.

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