Wednesday, March 30, 2011

03.30.2011

More Sideways Movements!





Another session of sideways movement for the market and this is very healthy. Markets can correct either through price or time and we are seeing how we have been moving sideways through time since we last went above $38.00 an ounce last Thursday. I live in a world where I believe there is no such thing as up or down too much in the regards that if a market is going higher and looks over extended does not been it has to sell off as well as the polar opposite on down moves when it looks like it is down too much. The same can be true for correcting through time. There is no such thing as correcting through time for too long, but the longer that one does move sideways the bigger the break(out)(down) usually is. In the first eight months of 2010 the market was in a sideways correction and it has a huge breakout to the upside, showing that because it was correcting for so long the odds favored a big move up or down. It has only been five days, which means on the daily chart (5 candles) that it is only starting to correct through time for a decent duration and the bias for the break is to the upside to the $40-$42 levels. This is only bias and remember to adjust to the message of the market. Because not much is happening the blog will be a quick one today. Tomorrow is the end of the month and quarter and should have some great stuff up then. Thanks again for stopping by.

1 comment:

  1. Thank you sir. Always enjoy reading your blog.

    ReplyDelete