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.
Trading in the stock market can be a frustrating experience. Just when you believe you are about to make a lot of money, you lose more than you thought you'd make. I would like to share with you a system that after years of trial an error, has proven to guarantee higher returns than investing in the Standard and Poors. I will post in this site when to buy and when to sell the SPY and in a year you'll get a higher ROI than just buying and holding it.
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
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.