GOLD FUTURES DISAPPOINT ME.....
I mentioned going into Friday I was thinking the metals looked like buys, here is the trade I did on Friday. This falls into the category of a disappointment. This trade was up a good bit ahead at one point then reversed and came back down. My plan had been to hold it if it closed strong which it did not do. As a result, I bailed out close to the close and made a measly $200. When trends get extended this far with all these little small stair step moves, the air gets a little thin. The branches get weaker the higher you get in a tree, and the trading tree is no different.
What I like a lot on this chart is how well my new baby has worked. The four signals were all good ones, although the last one was a scratch or small loss if traded depending on how it was handled. This is still something I am working on, and it will be part of a series I do with my newsletter. There are so many ways to trade, and I have some very good specific methods with this tool already, I still am working on a few others that are a bit longer in hold times than what you see above.
I still think Silver is a potential buy Monday, but I have not yet fully gone through all the trades yet.
We are nearing a point in time where there are some indications we are going to have a pullback in stocks.
You can see the Presidential Cycle indicates a potential small dip coming starting Monday or Tuesday. If the cycle holds true, which it has so far this year, this will be a small dip or even a sideways move. We are seeing some of the markets that have been closely correlated with stocks, start to decline. Typically stocks have led other markets, so this is interesting. It is too soon to tell if this is a sign that these correlations are loosening up, I doubt it. They are being driven by the FED and it's attempt to create inflation, so I think I will believe it when I see it when it comes to things returning to normal. I have signals on both sides of several markets for Monday, so it is kind of a mixed bag to me right here. Our Eurodollar chart does not indicate any stock top yet, so it is not in complete agreement with the Presidential cycle. I don't have any strong anti trend divergences in my timing tools, supporting shorts yet in the stock market, and I have short term buys tomorrow.
There has been an interesting development that bears watching, for those who use the Trade Navigator software. There has been a parting of the ways between Larry Williams and Genesis. I do have some detailed information about what is behind this, but I do not feel comfortable stating it here. I do not know what this will mean if anything. We have been assured we will still have access to all of the indicators, but it might be prudent to find a backup option here. I for one would be completely screwed if I woke up one day and had no access here. I am researching a place to try and get a backup plan going. I think the Genesis software is by far the best there is, and that is why I use it, and recommend it to others. I have a feeling any backup plan is not going to be very appealing, but you never know. I just closed my Tradestation accounts due to the poor financial position the ratings agencies are giving their parent company. If we look at the bad things that have happened with FCM's they all can be traced to financial problems with the companies developing first. As a result, I don't know if that is a good option. Tradestation probably has the most flexible systems development software, but it is very complex to learn and use.
Net net, nothing to do right now, but it is always prudent to have a backup plan in everything you do.
The court has approved the initial distribution plan for the first wave, but it has been pushed back some. It appears now the first wave, accounts under 50k, will get their money first. It is now going to be into October for the first wave, and the end of October for the second wave. The trustee is soliciting bids from FCM's for a bulk transfer. I have no idea what the interest level is on the part of FCM's. Most people seem to think it will be low. As I have stated, since we know now how vitally important it is to have multiple accounts at different FCM's. I am likely to leave mine where it lands if they do a bulk transfer, as long as it is a different place than where I have the current two accounts. I don't think either of those places is in the business of bidding for something like this anyway.
The lawsuit by Wassendorf Jr continues to be a very important development if there is any merit to it. It is very interesting to me that no statement by the NFA has been made here. The call either was made to the NFA or it was not. If it was they could deflect a huge amount of anger away from them, as well as potentially lawsuits that have been filed against them. The main critique has been they were negligent because they never spoke to anyone at the bank. If this allegation Jr made is true, they actually did speak to someone at the bank. It is bizarre just like so much that relates to this case. Also you have to keep in mind that legal maneuvering is just that. You might file a suit to try and get something else to happen, even if the suit you file does not have much merit.
I am actually ready to go but have spent yet another weekend without access to my FTP site due to trouble with my web hoster. Basically the editor where I can create and modify my content does not allow you to enter HTML code, even though it converts what I enter to HTML. When I tried to import the code for the Pay Pal buttons the whole thing shut down. I am furious with this guy at this point. I sent a message indicating a resolution will happen by Monday or I am going elsewhere. Let's hope he chooses Monday, otherwise I am going to be delayed again. Hopefully come Tuesday things will be rolling. I will be building this over time and redesigning upgrading etc.. so cut me a little slack day one. It is not intended to be an and end all for charting, researching, or things like that. It is designed to introduce me and my partner Michael, describe what we do, why we do it, and what we are offering.
Other things will be added as we move on.
This week is an important week due to the cycle up top, let's see what happens.