Stock Market - Key Reversal Day
I think today's price action proves to me at least why I am so glad not to have a position in this market. The stock market is chopping around shaking out both longs and shorts. Just when it looked like the market was breaking low things suddenly and violently turned around.
Today the NASDAQ broke to new lows for the year around noon time but about two hours later the NASDAQ staged a powerful rally putting in a key reversal day with good volume.
I still have no position in this market and will patiently wait for signs of a low risk high reward trade. I will say this much, today's key reversal at the year low may very well be the technical signal that the market needs to kick off the season rally that is due around this time. Only time will tell. 
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
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5 comments:
What are the signs for a low risk high reward trade? What do you look for? I am trying to learn patience.
unfortuantely Kevin looks like the day after is "continuing" the down trend. Agreed that Nov-Feb period is best for longs, but I think the pitiful economy gonna drag this Market lower.
thanks for you analysis
Hi Nefri,
The signs of a low risk high reward trade vary depending on who you talk to. We all have our own favorite setups so I can't really answer your question. I personally like to look for low volatility environments where the risk is low.
Kevin
Yoou mentiond giving us some targets for gold in a previous post.
Thanks and looking forward to it.
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