Update for Sunday July 15 - 2012

I found this chart on another site that could help us determine a good entry for Gold.

When this ratio hits previous low, IMHO, would be a good place to go long Silver or Gold. Probably, it will hit a new low.

Market Update for Tuesday May 1st - 2012

Today we got the expect bounce in the market. Stochastic moved from oversold to overbought on the 60 min. One of the gaps on NYSE mentioned on the weekly report got closed today; however, there is one more gap above left. At the end of the day, the Stochastic indicators crossed lower, signaling a possible market retracement, as seen on the chart below.

However, the Stochastic on the 15 min chart is at oversold levels and it looks ready to cross higher (although it hasn't crossed yet). As seen on the chart below:

I had entered a position on TVIX right at the market close today, however, after seen the Stochastic on the 15 min chart, I sold half of my TVIX in after hours with a very small profit.
My gut feeling is the market will move higher at the open tomorrow and there will be a chance to buy TVIX or TZA at a lower price then. Regards, STN

Market Update for Monday April 30 - 2012

As I said on my previous post, the markets on the 60 min chart had the Stochastic at overbought levels. That changed today at the end of the day and this could be the beginning of a new rally.
I had a position on TVIX that I sold at the end of the day today when I saw the Stochastic beginning to move higher on the 30 min chart.
As you can see from the chart below, the Stochastic on the 60 min chart of the NYSE is crossing higher. As I mentioned on my Weekend Report, all indicators say that a rally of multiple days is about to begin.

Market Update for Saturday April 28 - 2012

It's been a while since my last post and I wanted to get back and write my thoughts on what I see on the markets.
I see reasons for more upside, however I also see the market could move lower any minute.
Looking at the chart of the NYSI Weekly from StockCharts.com, the Full Stochastic is turning higher, which in general is bullish for the markets.
This could mean the market is getting ready for a multi-week rally.

The daily chart already shows the Full Stochastic moving higher and not flatenning or even turning down yet:

Looking at the NYSE hourly chart below, we can see 2 open gaps above, which indicate that the market could at least return to fill the gaps at those leves. However, the Stochastic is at overbought levels, although it hasn't turned lower, which means price could continue higher.

However, looking at the NYSE weekly chart, so far it has found resistance at its long term trendline. IMHO, unless this trendline is broken, any move higher, will fade at the trendline and the markets will continue lower.

RSI for most indices is overbought on the hourly charts, however, not on the 4 hour charts. My guess is we could move higher until indices reach overbought on 4 hour charts and then we will see a decline, but looking at the hourly charts, I'd be careful opening a long position with Stochastic in the overbought zone.

Best regards,

STN.

Sell Signal on CEF

We got a sell signal on CEF last week, we have been unable to maintain a long term position on it. It looks like the markets are making a top, we need a break below SPX 1352 to confirm a new trend lower. Regards.

Long Signal on CEF

Unfortunately, CEF gave a bull signal. MACD crossed positive. I am no longer recommending a short position. It could move higher to fill the open gap.

Short CEF: Central Fund of Canada Limited

I have been reading different web sites looking for some other kind of opportunities. Perhaps, less risky ones, and came across CEF: Central Fund of Canada. Looking at the daily chart, it has reached overbought and MACD has crossed lower. IMHO, this is a great short opportunity to hold until RSI reaches oversold and/or MACD crosses the other way around.