The Dow fails At Major Resistance
Above is a daily chart of the Dow Jones Industrials. You'll notice yesterday that the dow failed at a significant level of resistance which consists of the one third Fibonacci retracement level and the lows from last January and March.
This market is very difficult to trade at the moment, at least for me it is. You'll recall I was looking for a bottom in the stock market and it appears that the market has indeed rallied over the short term, but the groups of stocks that I was looking to buy (commodity related stocks) have not rallied.
Right now I'm going to sit on the sidelines as far as the stock market is concerned and patiently wait for a low risk trading opportunity to present itself.
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10 comments:
Kevin any comments on gold stocks.
Looks like they may be at support.
I'm still bullish on gold even though I've given back some profit over the past few days. Gold stocks will probably go higher but I'd rather be long GLD than gold stocks.
Can you give us an up-date on the UK and Canadian $
Thanks
Sure...Maybe on the weekend I will post some charts on the currencies.
Kevin - the DJ chart is nearly identical to the XLF, or any other financial ETF you can find. I shorted the UYG today to capitalize on the a similar resistance level, so I would have to guess the DJ failed b/c of the high shorts on financials after the huge run up.
Hi Kevin,
I live in South Africa and worked on the commodities desk for a number of years. I am certain the commodities boom is far from over, although I will never touch gold stocks especially here in South Africa. I would far rather invest in Platinum than gold. As I am sure you know SA contributes to 80% of the paltinum market and platinum has had a good pull back, I have just invested heavily into a share called Impala Platinum here in Sa.
Anyway I have just started my own blog, it is very rough, but maybe you can check it out and let me know what you think. Maybe I can add your blog to my blogroll.
Please let me know.
dollarsincorp.blogspot.com
Hi Alcapone,
Blog looks good but you need to add some charts. You know the saying, a picture is worth a thousand words.
Commodities are the worst to be in. This is a bubble that is bursting right now.
I'm short basic meterials, for a while already.
Kevin I enjoy reading your blog. I would like to place a link to it on my trading blog if it is ok with you? Let me know www.tradingiwththeaveragejay.blogspot.com
thanks Jay
Looks like a return to the neckline of a double shoulder H&S pattern to me. Look out below!
Mr. T.
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