Wednesday, December 14, 2011

Brief Notes

The S&P 500 did complete the stochastics sell signal on the daily time frame on Monday. So the stop for a new short entry would be above last week's high. I am not going to post any new trade on the stock indexes until I see how things unfold. All the other active trades already are set to make gains if the stock indexes fall.

As a side note, now that we have sit through a multiweek bear market rally in silver, I plan on removing the limit order to cover SLV at 26.00. I have said that I believe that this is a larger bear market in these metal, and I just wanted to cover at the first support before this rally. However, the SLV etf missed the target by a small amount and it did not get filled. But now we are in a better position where we can move the stop down a bit further and wait for silver to fall more. Given the long term context with silver likely to break its bull market trendline soon, I think there are quite a bit more gains to come on that position.

Also, gold did continue down yesterday. The lower daily bollinger band has now turned down. And the upper band expanded a wee bit. So this has the makings right now of a new stable downtrend developing in gold. Also the DMI/ADX indicator has moved into a a downtrend configuration on gold. The ADX has risen above 20 and prices are falling with downward directional movement strengthening.

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