Just Can’t Get Enough

Evenin’.  Hope your week is going swell so far.  Mr. Market has been sleeping so far here this week with the exception of the Sunday night ramp up to 1,290.  This sure looks like a pretty setup to go short, but I am leaving it alone for now.  There’s no edge in the equity markets right now – no extremes either way.

With that, then, I will again alert you to the silver setup that I like as a follow to the crisis in the currency markets.  Silver and gold are teasing us right here, but the signs are pointing to the first target of $40 on the first hint of further dollar collapse.

I see the Spring unfolding as a 2-part move:  first to $40, followed by a backtest and then a final push to $50 and possibly beyond.  No idea where this leaves the dollar but it’s readily apparent that wars, nuclear threats, mother nature, NFL lockouts (joke :)) won’t support the dollar any more at this point.

Don’t get me wrong.  The dollar will find a bottom as this 3-year cycle winds down.  But the bottom’s not in yet.  Not by a long shot.

Anyhow, the consolidation and/or basing going on in silver right now has the looks of the old IBD “high cup and handle.”  Once broken, all bets are off.  The race will be on to get in and it’ll get fun.

For now, we wait patiently.  Once the extremes are met, we sell.

Happy Springtime and trade the extremes – always!

Advertisements

About thefront9

Independent trader with a flexible approach to the markets. Position trading, swing trading and day trading using Futures, Equities and Options. This site is intended to help others (and myself) see what I see and to stay true to the discipline of making trades at the extremes. Contrarian and TastyTrade addict! Living in Texas with my family, helping others and maybe playing some golf from time to time makes life busy and great. Add a little music and humor and that just about sums it up. Trade the extremes and manage risk.....always!
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s