Tuesday, 27 September 2011 09:50

Trading Analysis, Recommendations and Market Commentary From Eurocalypse - 9/27/2011 Featured

key word: Patience

Hello BoomBustBloggers! Eurocalypse here to share a few thoughts about the market. I'd like to open this post with a much loved topic among the blogosphere and its readers, aka gold.

I'm sure I received quite a lot of scorn and criticism when I said that Gold was NOT a no-brainer buy for the LT (see past Eurocalypse commentary), and to avoid buying it when it was in the high 1700. Of course, it did squeeze more to 1900$, but I think the price action demonstrated that I was basically right, that there was a lot of speculative longs, and that Gold (denominated in USD) IS correlated to the USD index, more than the stock market.

Well I also said the objective for a retracement was the monthly moving average low 1600s, high 1500s so here is how the charts looks now (click an graphic to enlarge).


Oh! I like very much that candle touching the MA and bouncing there just after. We can zoom on the weekly and daily charts to see better what happened...


We touched the Bollinger low on the weekly. I'd say that was a double reason to buy at that level, together with the monthly MA level. That was a fantastic buy opportunity for the patient and opportunistic trader.


Subscribers (click here to subscribe) can download the entire 6 page commentary (which is quite interesting) as well as recommendations on winding down the profitable SPY pair/fly trades here File Icon Trading Tips Sep 27th 2011.

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