Thursday, January 12, 2012

Oh-oh - Two Horses Just Got Out of the Barn (SI + PL)

OK - this is getting interesting. Silver (SI) and Platinum (PL) have opened the barn door and started to run to freedom. The farmer will, without a doubt, start to give chase - with rope in hand - but I think it's too late. It's just a matter of time now until Gold (GC) and Palladium (PA) hear all the commotion and decide to add to the excitement with their own burst to the great outdoors.

What follows are three charts of Silver Futures (SI). A daily, 4 hour and 1 hour. 

Then a chart of daily Platinum Futures (PL). 

The farmer has a big fence around his farm and so the animals are still contained. He'll catch up with them and do his best to pull them to the ground. And at times he will probably succeed. But most likely this is the start of "Something New" and things will never be the same again.

Long live gold's secular bull (and the horses).


  1. Thanks John, You nail it again
    Happy Trading ,

  2. Great charts!

    Are you still in your ES trade? I hope so, looks like we had some kind of top--ST or IT remains to be seen--early this morning.

  3. I'm wondering about the /ES trade as well. I'm still holding my TZA waiting for some sort of retracement. It doesn't want to give back any gains at all. I don't know much about cycles, but it seems like we are due for something to happen. Volume is so low on spy too. Maybe that's normal for the beginning of a year. Not sure.

  4. Hi John, Thanks for your posting. Do you think that maybe this time the gold D-wave will conclude and a new A-wave will start without breaching the downhill trendline (see 'Sold DUST @ $ 37,76 - Gold Leaves a New Clue' of January 6, 2012)?
    Thanks again and good trading.

  5. Hi Norm - not sure what I nailed, but if you are happy, I am happy!

    New Post -

    I outlined my basis for selling an ES contract and my expectation on when I will be able to sell it profitably. Nothing has changed whatsoever.

    GUUS - Without having some of the confirmation pieces in place to announce a certainty, I think the D-wave is over and December 28 was the beginning of a new Intermediate (Weekly) Cycle and the beginning of the A-wave. But whether this is true or not does not really matter to me. I will continue to use the TSI to make the best decisions I can and hope I can make more money than I lose.

  6. TYPO - when I will be able to "buy" the ES contract back.