Monday, February 8, 2010

SLAUGHTERHOUSE FIVE

Look for the market to chop up traders stops this week just like today's action. Smart traders are heading for cover. This is an indecision for many traders that makes the risk reward equation just not worth the effort . Play the large gaps only for trades if you are in the miners but don't chase. I reduced my Too large miner core at the open and will sit out any heavy trades unles the gap is large. Essentially my next line for a trade is the 1020 area which is the 200 MA comin fast.

Be aware this is danger for the miners. Watch the 980 gold level. It looks like they may try and shake out the miners hard. Nasty game the boyz are playing and they don't want you in the miners so expect some ugly action.

2 comments:

  1. I think we're heading into a multi-month short opportunity. Might be good to enter some long-term trades early on and just sit on them for the duration. Easy money. Nice hedge against the gold/silver drop, too.

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  2. Gold has tested the 150 EMA 4 times and held. Once it breaks below it the 200 will be the target. If the 200 doesnt hold then we will see your 980.

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