Tuesday, August 2, 2011

08.02.2011

If you are looking for buy signals within' this chart you maybe able to see it as its breaking nicely. It is not uncommon for charts to find support at an average in the area of eighteen periods and then after stabilizing making a nice run. The upper bands were tested for over six months. It really needed a big break above this level to go parabolic and it was close, but not quite. short-term history tells us we had a manipulated market take it down with margin calls and we also know it is all manipulated. However, I don't know that much to how it is manipulated and I have faith in natural law that it will all work out. Buying on weakness was at $39 and $33 and those who bought there made a good play and if you are one them, good job. The $50 level will be the fourth test as two times that level was tested this year and once in 1980 and the more often resistance is tested the more likely it is taken out. Therefore if it breaks this I will be looking for the $75 area be the next major level. For now it is simply breaking away from the eighteen moving average as well as the fifty day moving average shown below. The bull is in right now and it will be until it is not.






I find it interesting how the CNBC channel shows that Silver is at $40.092 and Gold only at $1,644.50 and it makes me wonder why they show that when these are levels not seen since before two o'clock New York time. As I write this "Fast Money" guest is saying it is a long term play and did not give it much optimism on the short term. During they day they would ask the questions, "Why is Gold going up so much?" and the answer is very easy. I know them and I think you know them as well if you are reading this blog. I have not heard Cramer yet and today is my CNBC day and will stick with it until 7pm tonight. It is looking as if gold and silver will go higher based on the theory of a counter trade. They were bullish on stocks today and not so much on gold and silver. I rarely even heard them say "Silver" for the two or three hours that I caught. When these networks talk big about gold and silver then you may aspect that correction on the short term and now that they are not it gives me one case to be bullish this week and next.

1 comment:

  1. Well i bought at 34, 37 and now 40. But im only buying small amounts so it really dont matter, jutst buying every time i have money to get out of paper.

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