Friday, January 22, 2010

Great Trading day For SWC & PAL

Very Nice trading gap today. Here is from Joe:
For those of you playing SWC and PAL, keep your eye on physical price of palladium:

Palladium price is at - 14dma = 434.83 / 50dma 388.04

The metal is bouncing near it's 14 day moving average, if it falls below the 14 dma average, the next resistance will be near 408, then 388.


As far as playing SWC, as long as the overall market stays down, the best way to play SWC is to play the gaps daily which means day trade the gap it gives you. Today the gap was between 11.50 and 12.30, at the open it was taken down to 11.50 and went up to 12.38 before retracing. In a down market SWC during the day drops about 0.70 to 0.80 initially, then fills the gap during the day before closing at initial low. Play it accordingly in order to minimize loss risk.

As far as Gold stocks, market spoke today. Physical Gold was down, overall market took a beating but my favorites JAG and ANV finished in green. GG finished the day slightly down. This is a telling sign. Gold stocks took a beating initially when overall market down turn started this week and today it seems they reached the bottom.

13 comments:

  1. 1107 decisively broken on S&P next test is 1090 could go lower than 1075. Just really depends on what the bankers want in concessions from Congress and the President. Still just a game at this point, so watch for entry points in gold/silver miners if you are still playing in this rigged market. Platinum/Palladium is more wicked and is more focused on the industrial value versus monetary value like gold.

    Basically keeping the powder dry

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  2. Red this is a treacherous market but I think miners JAG EGO ANV are at nice levels to buy and hold......add if they get weaker.....high volume and green.....

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  3. Was it Red that said Precther followers were wetting their panties this week? I'm a paid subscriber to EWI...Long ZSL(huge postiton), SMN(huge position), TYP(Huge position), SRS, TZA....I bought lots of "new panties" this week...:)! I am also a paid subscriber to Charles Nenner....went to cash 2 weeks ago and put on shorts last Friday...Woo Hoo!!!TexasBlondie ...Thank-you Mr P. and and Mr. Nenner!

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  4. All,

    To be clear, when it comes to palladium:
    As long as the overall market stays down, the best way to play SWC which is palladium metal and has industrial value, different than gold is to play the gaps daily which means day trade the gap it gives you. Today the gap was between 11.50 and 12.30, at the open it was taken down to 11.50 and went up to 12.38 before retracing. In a down market SWC during the day drops about 0.70 to 0.80 initially, then fills the gap during the day before closing at initial low. Play it accordingly in order to minimize loss risk.

    palmer

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  5. Dear TexasBlondie,

    Actually said we were not in P3, difference between P3 and this staged pullback is a lot of wiped out people. The pullback was at minimum to somewhere near the 20 week moving average, if it doesn't look convincing it will be taken down to the bottom of the weekly bollinger band for the S&P 500 which is around 1015-1020. Not worth taking the risk of when the the bankers do the V after they get their next tranche of black mail money.

    My comment is if people still enjoy being masochistic is to get into some miners AFTER the pullback at certain points only each speculator can decide middle or lower Bollinger Band , daily/weekly. If you don't want to play just get some physical gold, out of debt, food and forget about it.

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  6. Red gonna have to take a risk here if you wanna play the game......so I like at least an add to miners here...hold some powder but with the gold miners you can add if you are going to play the game....for most people here they wanna try and play this game....gap trade here is a nice play now...

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  7. Red,

    Your comments overall and safe approach is VALID, how ever there is an important point which you need to realize brother and that point is, after it's all said and done about economic perspective,,etc, most people who view kline's blog are looking for direction on how to MAKE MONEY in this ponzi market. They want to take that risk. If kline does not give them some sort of direction and blog becomes purely an economic blog then he will lose viwers. At the end of the day, they want to know how to make money from the market regardless of all the other issues.

    palmer

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  8. Agree, have to take some risk. I placed tight stops this afternoon and took some off the table. I swing trade them. Yes I hold physical gold/silver(have for years)...no debt and we keep food/water/etc... supplies. Don't forget cash and ammo! Bounce next week....most likely, but I think overall down trend now starting again. Truth be known we are really at war with China. We gave them our jobs and they will slowly bleed us to death unless we kill ourselves first with our own insanity. "Jobless recovery" my butt! LOL! GL All next week...should be interesting. TXB

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  9. What are your thoughts on vgz?

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  10. Hi Joe,

    Where Kli took a position and you covered was the 1st entry point for gold 1080. Not too confident that will hold considering this is the final low wave before they start reflating aggressively. Same with watching the critical S&P 1107 level break you then got a hot knife through butter down to the 1090 level. Next is 1075 on S&P, analyze has 1077, just a game to see if that gets enough bears and fear into politicians, I don't believe it will and we could see final bottom for this fake out around 1015-1020 before we resume the road to the 200 week moving average, because I don't believe 1150 was it.

    Someone mentioned vgz, if you want to trade fine, I never touching that POS again, held it for years management seems to really go nowhere fast, take a look at their 2 year chart pathetic.

    Stick with AUY, GG, my personal tracking favorite is GFI. As for oil avoid ETF, stick with stocks personal favorites have been PBR and PTR , petro brasil and petro china; if you believe in the reflation is coming and China is not down and out as Rick Ackerman states, and long entry opportunity is coming up. Reason I am mention oil is it is slowly starting to sync with gold regardless of short term demand.

    http://finance.yahoo.com/q/ta?s=PBR&t=1y&l=off&z=l&q=l&p=&a=r14,ss,m26-12-9&c=

    Also the reason I am telling people to be careful is many people are confusing buy and hold with what is being presented here which are swing trades, gap trades, and short term momentum trading.

    As for SWC, unless you are a very experienced trader like Joe, who can read the slightest change in short term direction on the most obscure stock and reposition quickly, stay out and stick with gold/silver miners and foreign national oil compannies, avoid US companies.

    Can stress enough for new readers, if you trade you better fully understand technical trading charts, especially moving averages (convergence & divergence), bollinger bands, rsi and stochs, macd, obv. Oh and avoid the EWI bs of P3 is just around the corner, only thing around the corner is who is going to get hosed next and you want to be on the giving and not receiving end.

    Hope that was helpful to your readers Kli and Joe.

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  11. Red,

    You are a brilliant man, it's important for others who are still in the learning process and WISH to trade this ponzi to read your analysis in regard to this yr's market. As I mentioned before, your personal decision to stay away mostly from this ponzi is a CORRECT and WISE one. I wish most retail traders to stay away from the market this yr and part of next yr since it's going to be very volatile and at times violent moves in either direction and just accumulate physical Gold so they do not have to deal with GREED and FEAR which is the main part of the market.
    palmer

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  12. Red, I suspect you have become addicted to Alpo and it clouds your judgement ;) My target of 1077 is far superior to your 1075, and you had the audacity to say it is not even feasible. Shame on you lol. - Analyze.

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  13. Red, aside from yanking your chain abit in the previous post, I do agree with you in general related to possible levels of SPX, my post was meant to have people think outside the box in terms of SPX reversal levels, so that they do not become trapped into a trend. Thus the reason for putting the Roth*child limit out there. I am free to post related to them, I suggest no one else mention them online unless it is part of a string I am on. - Analyze.

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