15 replies to this topic

[diogenes227]

http://stockcharts.c...69791094879.png

[dougie]

other than volatility what am i suppose to see there?

[diogenes227]

other than volatility what am i suppose to see there?

That's it. Day traders love volatility. I remember Trader Vic Sperandeo once said: "I'll trade anything that moves but it better move."



Good luck and good trading.

[Russ]

Is Dust a buy here? Will it break above its double top?
http://stockcharts.c...69840812359.gif

[diogenes227]

Is Dust a buy here? Will it break above its double top?
http://stockcharts.c...69840812359.gif

If the double bottom in the Bullish Percent can hold, and NUGT (or GDX for that matter) can break above the green horizontal line on the chart below and if it can keep the slow up turn in the blue line going...if, if, if...

Lots of "ifs" but if so, then I reckon DUST ultimately is a sell here. In the meantime, it's, as the Beatles would say, a Day Tripper.

Good luck and good trading.

http://stockcharts.c...69842900524.png

[SemiBizz]

Well Dio, after gold dropped $600 and the XAU was cut more than in half, there will always be daytrading opportunities in gold and gold stocks. The gold bulls will never stop believing, so they are going to continue to try to bottom-pick. In the meantime however, so much BACK-PRESSURE has been built up in these issues, it will take YEARS to reconstruct this market. Every advance will run smack dab into sellers as they will be happy to get out, because they are TRAPPED like RATS. As for DUST, it's neither a BUY or a SELL here, for daytrading purposes. We're not at support yet. There's no risk/reward to short it, so it's in transition. Need a few more of those believers to step in and run the gold stocks back up a little more.

[Russ]

The facts do not support your view...

"Commercial participants in the gold market, also known as “smart money” given that they work in the industry as opposed to being speculative trend followers, are the most bullish on gold in nearly five years.

As prices declined over the last few months, commercials - those involved in the production, processing or merchandising of a commodity - have been busy buying futures contracts and covering short positions, according to data from the Commodity Futures Trading Commission.

Their position rose from a low of a net short 269,270 contracts in October 2012 to the present net short position of 84,122, notes a report from Euro Pacific Canada today. This means commericials initiated new long positions, and covered previous shorts, resulting in an increase in their total net position by just over 185,000 contracts.

It’s a different case for the other two groups that the CFTC tracks in the commodity futures markets.

Large traders, mostly made up of hedge funds that are often trend followers, are currently net long 83,726 contracts - the most bearish reading since the October 2008 bottom. The group tends to be the most bearish at market bottoms and the most bullish at market tops, suggests Euro Pacific Canada analyst Dima Kash.

The third group, small traders, are those that control a very small portion of open interest in futures contracts, but their actions tend to help gauge retail sentiment nonetheless. Historically, they have been on the wrong side of the gold market at key inflection points, according to Mr. Kash. The group this month had a net short position of 1,704 contracts, an extremely bearish reading not seen since February 2001 when the gold market was about to begin its decade-long bull-market run."

Well Dio, after gold dropped $600 and the XAU was cut more than in half, there will always be daytrading opportunities in gold and gold stocks. The gold bulls will never stop believing, so they are going to continue to try to bottom-pick. In the meantime however, so much BACK-PRESSURE has been built up in these issues, it will take YEARS to reconstruct this market. Every advance will run smack dab into sellers as they will be happy to get out, because they are TRAPPED like RATS.

As for DUST, it's neither a BUY or a SELL here, for daytrading purposes. We're not at support yet. There's no risk/reward to short it, so it's in transition. Need a few more of those believers to step in and run the gold stocks back up a little more.

[SemiBizz]

The VOLUME in the XAU and Gold Contract and the GLD ETF, do not support YOUR VIEW. SHOW ME THE MONEY... There's a bull market in TALK. That is ALL. ACTIONS are telling another story.

[Russ]

As I have said before I agree that Gold will go down more eventually, I just think it is over done now and the sentiment supports that view, the little players are short to the gills as are the medium players, the commercials who are usually right are long. With people like Armstrong pounding the table saying Gold is going to test its 1980 highs then lots of people are scared now. That is what you need to propel markets higher as the short cover. We'll see.

The VOLUME in the XAU and Gold Contract and the GLD ETF, do not support YOUR VIEW.

SHOW ME THE MONEY...

There's a bull market in TALK.

That is ALL.

ACTIONS are telling another story.

[SemiBizz]

So why don't you just let the market talk for you? You think XAU 125, we're not even close. Time to quit pounding the table and see some RESULTS. The only thing that happened since we last had this conversation is a new XAU LOW That's the last word for me.

Edited by SemiBizz, 29 May 2013 - 12:33 PM.