Jim Puplava…Financial Sense, QE or no QE…SWING TRADING FORECAST for the trading week ending May 25, 2012
Jim Puplava with Financial Sense wrote a great article about the markets and whether or not we are going to see more QE. I’am not going to go into the article here.
Not much has changed from last week in regards to the charts, click here to see.
I had mentioned that there was a minor pivot point slated for May 23rd. As it turned out it was a retest of the previous low.
I’am not going to discuss the chart above too much, they say a picture is worth a thousand words. Remember the Swing Trading Forecast Model forecasts changes in trend but the forecasted pivot points can also mean a break down or break out in the markets. The model has changed a bit, as time moves forward June 12-15 might not be a tradable pivot point to the upside but to the downside to play itself out on July 17 which is slated for the next pivot point. We’ll have to see when the time comes.
Last week I picked away at a junior mining stock. I’am not going to mention it here only because I’am not licensed. The markets in general move in tandem. Let’s look at the HUI Index (Gold Bugs Index) below.
I didn’t notice it at the time the HUI INDEX was making its retest on the 23rd but after I was done my buying spree there was a reverse head and shoulders in the making on the hourly chart
The weekly chart above shows you the nice weekly engulfing candle, beautiful, remember nothing is certain in this world, just high probabilities. The center line (click here to see the previous post about the center line).
The last chart is the Dow Jones World Stock Index, does the patter look familiar.
The Dow Jones World Stock Index shows a Head and Shoulders pattern. If the pattern plays out, the price action would tag the 140 level based on the Head and Shoulders target calculation. If the pattern doesn’t play out it’s definitely bullish for sure, based on probability’s of course.
In summary, the financial markets in general show weakness ahead except for the gold market, If gold goes below $1525.oo then we’re looking at deleveraging across the board. When looking at the macro picture the most important thing to look at is the bond price. The US 30 year bond price ended the week at 147.5, the money has been pouring into bonds but can it hold up. It’s a well known fact that one of the most important things to look at is bond prices, reason being bond traders are the smart one’s on the block and they’re like vultures sensing death before it happens. There are many questions we can ask ourselves at a time like this but history is our friend and if your well acquainted with history, the present day will rhyme with the past. That’s why I recommend reading Jim Puplava from Financial Sense, Will There Be Stimulus. Swing Trading these pivot points in the present day markets can be profitable because of all the volatility but if you’re on the wrong side of the trade or if your not sure what to do it can create lots of heart burn. I myself find it quite soothing, nothing really shocks me any more.
Jim Puplava’s article sums the situation up perfectly, the powers that be will do what they’ve been doing all along and continue doing it until the system falls apart and then we can start all over again, that’s what always happens, so there’s a good chance history will repeat itself.
Here’s a link to a series of pictures that illustrates currency debasement over time. Very interesting, Click here to see.