iShares Silver Trust ETF SLV Coiling Up in a Symmetrical Triangle

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The long term iShares Silver Trust (ETF) monthly price chart of the silver ETF is showing that it is compressing into a 9 month symmetrical triangle that also appears to be the right shoulder of a much larger head and shoulders bottoming pattern. If the iShares Silver Trust (ETF) can get a move going to … Read more

The Gold Market Deserves Full Coverage

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In the days and weeks ahead I may start to do more close coverage of both the gold price and the mining stock sector.  I may do this because of the chance that the gold price may soon unleash itself into a raging (bullish) monster and it could start to become more relevant and timely than any other sector in the market right now.

I have been doing a lot of coverage of the sp500 and the SPY ETF.   But I have to tell you honestly, where is the trend in that market ?  It seems like a wasteland of swing trading ranges and lack of real gusto in terms of direction.   The direction will eventually reveal itself but I want to cover the areas that I believe deserve the most attention and ahead of everyone else before they become ‘mainstream’ ideas.

Of course I will still need more confirmation about the possible moves in the gold and mining stock sector in the weeks and months ahead but I am sensing that something big may be close to happening in this sector and I want to be on top of it before the dog and pony show starts on the major business TV networks.

It could very well be that the gold market will become the ‘only game in town’ soon.  People have said that before but to be honest I have still up to this point not really noticed a mass public adoption of the gold story.

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SPDR Gold Trust GLD ETF Close to a MACD Histogram Confirmed Buy Signal

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The SPDR Gold Trust (ETF) appears to be close to a weekly confirmed MACD histogram buy signal.  The GLD ETF needs to get a weekly close tomorrow above 118.42.  Currently it is trading at 118.56.

A confirmed weekly buy signal on the MACD histogram tomorrow would in our view be very significant as we are just 2 weeks away from the seasonally very powerful month of September for the gold market.

The weekly chart also shows a weekly reversal hammer of 2 weeks ago in which the trading low of that week tested the neckline of the previous head and shoulders bottoming formation.

The SPDR Gold Trust (ETF) also shows that it was able to crawl back above topside above the longer term up trendline.  This recent move appears to be creating a handle of yet another cup and handle formation which the gold market has been quite famous for time and time again.

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One could also argue that the recent 8 to 9 month consolidation resembles that of an ascending triangle formation but is also a cup and handle pattern contained within it.

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Russell 2000 Showing Possible Head and Shoulders Bottom Symmetry

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The Russell 2000 today is printing a reversal hammer that looks quite typical and reminiscent of the reversal hammer of 6/8/2010.  In the large swing trading we have been in over the last few months, these reversal hammers have been somewhat famous for picking exact bottoms in the markets large swing trading range. Today’s reversal … Read more

sp500 Registers Second Highest Arms Index Reading Since June 4 2010

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The Arms Index today closed at an amazing number if you are superstitious.  It closed at 6.66 according to my data provider.  I am not going to go into the superstitious aspects of that number but I will say that on a very short term basis the market is deeply oversold.  This was the highest reading since 6/4/2010 record high closing value of the TRIN and before that it was the highest reading since 2/10/2009, quite a long time ago.

The volume on the SPY ETF today was 273 million shares which is a dramatic increase from the last few weeks but still not of the level that I would consider it panic volume.  In fact the steady declining volume trend in the SPY since the April 2010 highs still shows this pattern even after today’s mini flash crash.

So the very high closing TRIN today tells me we get a one day bounce higher tomorrow to work off some of this short term oversold condition and get back into the range of today’s 20/20 candlestick bar.

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I think it is very telling that today we did not get down below the 7/30/2010 price hammer candlestick low of 1088.01  We had all this price destruction today, the high ARMS index reading wholesale dumping of almost everything and at the end of the day the bears could not even push us down a little bit more to break the 1088.01 swing ? (red dotted horizontal line) Hmmmm.  It bolsters my short term take that we bounce higher tomorrow within this somewhat larger rectangle.

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Market Vectors Gold Miners ETF Long Term Chart Looks Very Bullish

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The Market Vectors Gold Miners ETF monthly long term candlestick chart looks very constructive right now.  The GDX has pretty much been left for dead for almost a year now.  The argument has been that because the mining stock index has not broken out to new all time highs, that we should assume it is … Read more