During market correction (or bear market), long term treasury (TLT), gold (GLD) and short (SH) perform well in the past.
GDX seems to have formed a rising RSI channel. Wait until the lower bound is touched or resistance line is broken and find a good entry at that time. Need some patience.
Thinking to buy some TBT (ultra shot 20+ year treasury) tomorrow or early next week, pending technical development. I am long treasury - so this may be a counter-trend short term trade.
Just a possibility (there is absolutely no base for this), such that I can have my mind open for a possible prolonged bull market. Assuming we were to be in this kind of market - for SPY buy dip, for TLT trade range.
A serious warning sign that cannot be ignored.
1. Emerging market shows strength, as shown on the VWo/VTI ratio chart. 2. As of last trading day of April, it broke a major resistance line that has been there since April 2011. 3. 3 month moving average crossed above 5 month moving average, a buy signal.
SPY is back into uptrend channel. If no major interruptions, it may keep climbing. To myself: Keep mind open and be flexible.
If you trust the chart (chart does not lie), GLD is the way to go! I know this defies common sense and logic.
Coincidentally, TIP has a reverse head and shoulder breakout. This seems to suggest inflation expectation is on the rise, and owning GLD is more favorable than owning DXY (dollar).
The monthly 3/5 MA crossing system has a tentative buy signal for GLD. Will have to wait a couple days to be sure, as there still has 3 trading days left in April.
Purely speculative based on 2008 and 2011, but keep mind open. It is riding an up trend right now anyway.
in 2007, TLT rose several months before SPY peak (front run market top), and in 2008 dropped several months before the market bottomed (front run the bottom).
Applied 2007 chart pattern to today's market, and it fits pretty well. Of course the market does whatever it likes and does not necessarily follow any pattern. That being said, major support and resistance lines for 2002-2007 and 2009-2014 are similar. Maybe people behave the same psychologically, maybe people and machines have studied past patterns and have been...
This chart tries to demo gold price, dollar and interest rate can go same direction at times. So rising dollar and rising rate do not necessarily mean lower gold price (but most of the time, yes).
Revised: now using the "MA Cross" indicator which has the actual cross drawn on the chart. Previously I was using my eyes to spot and missed 4 crossovers. Use 3 month EMA and 5 month EMA cross over as signal to enter or exit market. Monitoring - once every month at last trading day of the month. Buy - when 3M EMA crosses above 5M EMA Sell - when 3M EMA crosses...
Use 3 month EMA and 5 month EMA cross over as signal to enter or exit market. Monitoring - once every month at last trading day of the month. Buy - when 3M EMA crosses above 5M EMA Sell - when 3M EMA crosses below 5M EMA Since 2000, this system needs only 10 trades, avoids most of losses and captures most of the gains. According to this system, if you are a...