Tuesday, June 24, 2008

Potential Big Trades I Am Watching



The Canadian Dollar has been going sideways for many weeks which usually means a large trending move is coming in the near future. Notice the position of the stochastics and how low stochastic readings coincided with major buy signals in the past. There is no entry to buy at the moment but this currency is on my watch list.



The British Pound looks like it's finding support and may be in the process of putting in a significant bottom. Keep in mind the commercials are building a net long position which in my opinion is very bullish for the pound. I'd like to see the green trendline broken followed by the red line which would confirm that the trend has turned back up.



Gold has a head and shoulders bottom formation but the entry to buy has not been reached. I am watching this market closely because I think we may see a rally in the metals.



Above is a weekly chart of Platinum. Notice the perfect symmetrical triangle formation that is taking place. There is no entry point at the moment and I will only take an upside breakout of this formation if it happens.

11 comments:

Anonymous said...

would be very surprised if pound breaks to the upside, given the fundamentals.
Another wave of dollar selling is not even comprehensible.
how do you trade platinum? is there any stock for that?
thx

Kevin said...

Some stocks correlate with platinum but the best way to trade this metal is in the futures market.

Romeo Bravo said...

Anon:

Or SWC. Plat miner

Anonymous said...

I have followed this blog for over a year, and it remains the best, very impressed. (I'm a market pro with 5 years experience)

Anonymous said...

if one does not have a futures account what can be bought that is a platinum play. I see SWC as the only option. Are there more?

Kevin said...

PAL might be a consideration but I'd rather buy the metal itself. I bought GLD which tracks gold. I think both gold and platinum will move higher.

Kevin said...

Thanks for the kind words my anonymous friend!

Jesse said...

http://www.marketwatch.com/news/story/first-platinum-etns-expected-list/story.aspx?guid=%7B70D4DE78%2D3AE3%2D4A1A%2DB730%2D953E0916B57F%7D

New platinum etf. Symbol "PTM". Search kitco articles for "platiunum etf" if the link doesn't work.

Anonymous said...

Kevin, do you not think the JPY may now try and 'catch up' with the falls in the S&P500? In which case it should be back at 100 now, not 107? Or perhaps an S&P long vs JPY sort?

Kevin said...

I think the foreign currencies will rally so I wouldn't short the Yen. I really like the swiss, Euro and Pound as a long. Not too sure what to do with the Yen.

Kevin said...

Thanks Jesse,

I knew they were thinking about a platinum ETF but I thought they put it on hold for awhile.. Thanks again.

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