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Today was another good day in the stock market for the precious metal bulls. Gold closed mostly unchanged, silver up nearly 3.5%, and those miners - the HUI index - closed a second day above it's 200 dma with a nearly 1% advance. The US Dollar, meanwhile, tried to advance but was turned back to close essentially unchanged.
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For today's charts, let's begin with a look at the US Dollar, then today's purchase of the 2X Miner ETF NUGT, and conclude with a pair of new trade ideas for the Tomorrow's Trades (Today!) service.
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This 4 hour chart of the U.S. Dollar Futures Index (DXYO) reveals that the True Strength Index (TSI) indicator recorded a negative divergence shortly after midnight last evening and the buck spent literally all of today dropping in response. Each of the three stochastics are pointed bearishly lower at this time, and the Demand Index notes that the pressure (volume) to sell the dollar has been significantly greater than the pressure to buy. My interpretation of these technicals is that for now, the dollar is going to head lower. And this, of course, is a good thing for the previous metals and their miners.
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Click on any chart to ENLARGE
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This is a daily chart of the Direxion Daily Gold Miners Bull 2X Shares ETF (NUGT) which I bought this morning at $32.00. I was not available to snap a picture of this when my GTC limit order was executed - this chart was made after today's close.
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There is lots of excellent technical details on the chart for those of you who want to study the behavior of the TSI, tripleStochastic and Demand Index indicators.
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I have chosen a couple of new trade ideas for tomorrow and have provided the details of the purchase and sales price on the Tomorrow's Trades (Today!) page if you should be interested.
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This is a daily chart of the Global X Silver Miners ETF (SIL). What I found striking was the similarity of the present setup when compared to that of the late January and February period. Honestly, pretty much every bell and whistle desirable is on this chart. Demand Index positive, Stochastic Momentum Index (SMI) positive, triple stochastics rising sharply out of oversold conditions, trend line break and ZERO crossover on the daily TSI (7,4) and Volume Flow Indicator (VFI) is rising sharply above zero.
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The other position I will attempt to take on the long side tomorrow is shown by this daily chart of Global X Gold Explorers ETF (GLDX). I have notated the bullish technicals on the chart.
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Other news: the other suggested trade for today, DGP, did not execute at the limit order price I set. I have made that a Good `Til Cancelled (GTC) order and if/when it trades at $48 I will be a owner.
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The details of this evening's trade ideas are here.
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The details of my trading record of Tomorrow's Trades (Today!) is here.
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My TSI Trading record has been updated.
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6 more days of school. Do you think I am counting them each day?
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Nov. 23 Weekend report
1 day ago
What percentage of your portfolio do you allocate to each position? Just curious as to how aggressively you are playing this move.
ReplyDeleteKeep up the great work!
Thanks Dan. I am putting about 10-20% in each one of these trades.
ReplyDelete