Is Gold 'Digging' Up?

Was looking up at the Gold Futures the past week and seems it's starts to rise up from the 'dead'? With the daily chart below, the July contract is forming a small 'cup with a handle' pattern, a sign of a bullish trend. And it formed a 'w' pattern, with a double support. I guess John Paulson starts to have a sigh of relief, for his position in the Gold had been battered for almost a year on the bear side. Ready to 'dig' for the Gold?, I guess it will be good now for the 'gold diggers'!

 

Visa (V) - A Classic Example of Long Term Investment

Showing here a monthly and weekly chart of Visa since its IPO in the latter part of 2009. The monthly chart shows the classic cup with a handle pattern, a bullish sign. And the other is the weekly chart showing its unprecedented upward movement. This is the kind of Warren Buffet/Peter Lynch classic example of long term investment, buy the business and sleep/or a 'buy what you know' thing.

 

 

 

Is the 80/20 Pareto Principle Applies to Trading?

Been examining the Pareto Principle of 80/20 if applies to trading, but I guess it applies so. The 20% should focus on the number of trades, that is, be selective with the days or the time to place/make a trade, not just trade here and there that leads to overtrading and incur more costs in commission. The 80% should be concentrated upon the probability of the trade setup that has the highest percent outcome.

 

 

Turning to trading Futures Crude for a change

Started to trade futures crude lately and kinda' like trading it, though it's quite volatile. Trading the crude one need to be nimble, cannot trade in a longer time frame unless you have a longer 'rope' to spread. I find trading crude is best to participate in the Globex market, the overnight session. And to capitalize on its move, scalping is the best method I find applicable.

The crude rallied the past two or three days because of the on-going events in Egypt. The chart below shows the daily move of the crude.

Market is 'now detoxicated'?

Market is correcting, as shown from this daily chart, for a while? It is showing resistance as of this posting. But I guess it is forming a head and shoulder type of pattern, a sign that the bearish formation is still valid. The market is quite volatile the past trading weeks or months, it is acting in not so unpredictable move. It is like a 'drunken' individual ready to run 'amok'. That's why engaging the market when it is acting like that is not advisable, just wait when the market is already 'detoxicated'.

I told you so...'Bank Your Profits...Now or Never!'

Validating my post last April 21, 2013 that I titled 'Bank Your Profits...Now or Never?' was a reflection that the market was at the top and needs correction.

The daily charts below says it all!

And the historic market adage 'sell in May and go away' is quite valid.

Market Exuberance

Been a while not posting on this blog and was quite busy trading the market exploring the market exuberance. Trading the market the past few weeks was quite challenging and nerve wracking if i may so. The market was on the uptrend the past months or so but was on the downtrend or in its choppy mode since the second week of May. From then on the market was on its unpredictable behavior, it's like bull today bear tomorrow.

From this daily chart of the Nasdaq 100 (NQ futures, and also it is similar to the other leading indices, the S&P 500 and the Dow), you can see the participants behavior was quite imbalance, seems its suffering from ADHD? The market from then on was for the traders, not for the investors? The traders are making tons of losses and winners, the losers are the novice traders and the winners are the pros. But if you are an individual trader trying to capitalize on the market imbalances and you do your trading based from your own understanding, you can do quite well. You have an advantage over the other ordinary individuals who are just on the fence doing nothing. That's why the market is attracted to other creative individuals who are exploring other opportunities. The market offers great opportunities to everyone and it's there for the taking, you just have the interest in learning how the market works.