Friday, October 8, 2010

Quick update

Dear my Readers,

I am more than happy to see some discussion started between you and you change your ideas.
I've seen lots of talk about gold and silver, and I feel I should share my thoughts about precious metals.

So, my next post is about silver focusing on the ATH bull rally and how to exit.

RUA 2-days:

MVO made us a favour and signal us local surge in the last 16 days. Now it seems exhausting. Internals are fine, what needs attention is declining momentum. Market needs impulse up. I feel it will get that next week, as alcoa jumped 6%, so we might see a nice earnings season. Close monitoring recommended.

I am skipping 1-day and 60-mins, but let me show you the beautiful 30-mins chart!

RUA 30 mins:

I hope for now you already have a marketvolume trial account (it's free) and you could follow this beautiful invisible bullish insertion of smarts materialized since Wednesday.
Personally I traded that with e-mini futures (yes, I watch RUA chart and trade e-minis, practically the same but better readable, be careful trading in futures!). Also my clients called me today and talked to me as I was their son.
Anyway look at this chart above, it's really nice to see how clearly visible the slow elimination of the bearish volume, then silent buy on strength insertion, finally price manifestation ! I told you on wednesday smarts know something. Yes, the knew it... and they fooled smalls again...

USD: I dont have time to make a chart for you, but I hope for this time you follow it by yourself: it's collapsing. I hope it will find ground at next level in my post here:

Gold miners 2-days:

After a backtest of ATH miners continue the bull rally. I feel gold is in a take-off mode. Smarts play with smalls here. Please take a look to MV selling buying volume indicator; smarts pulled prices down but they cant' hide what they did: inserted more money into PM sector. I am just wondering how big number of smalls they could manage to freak-out. I personally added some more junior miners, also bought some silver futures for fun. (latter made a nice money, hehh)


Silver/Gold miners are in the hands of smarts as well. They made a nice buyup after freaking out smarts.
Internals seem fine, however exhausting MVO signal might result some further pullback. (this is a usual symptom, as MVO signals local surge, and after that surge, usually rally slows down its pace.) Momentum also gives reason to worry a little.
However, falling dollar, rising index and MR. GOLD's rally will pull it further. At least for a while.

WARNING! Silver is extremely volatile. If you don't feel having strong nerves to stay sit by watching you  loose 4-7% of your investment in a day knowing next 3 days it will rise 10% then dont buy the white metal!

Have a great week-end!

ps: I see lots of new visitors joined to read my posts. Welcome. Please read the FAQ section:

our trade result is around 25-28% in 3 months following conservative principles.

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