Posted by 22 August 2011

August 22nd 2011 Full Market Recap with Gold, Silver, Oil Updates

(Tonight I am trying out some charts with colored bars alongside the normal black bars. Which do you prefer? Comments are on so please feel free to share your opinion on which you like better!)

After a nice AM gap to the upside, the market quickly ran out of steam and reversed. By midday we were teetering around 1121 support which held up into the close.

Realistically this market could be on the verge of another large and volatile break to the downside. Specifically I am watching 1120 on the S&P and 1100 thereafter. Cash is a position and it remains as the best position to be in.

Gold is going parabolic and Mark from fundmymutualfund noted today that GLD’s market cap is now approaching that of SPY (the most popular ETF in the market universe). All speculation but Mark comments that SLV’s volume surpassed SPY’s just before it peaked and subsequently crashed. Interesting stuff.

Stay frosty out there and I will see you back here tomorrow.

Trend Table
Trend Nasdaq S&P 500 Russell 2000
Long-Term Down Down Down
Intermediate Down Down Down
Short-term (-) Down (-) Down (-) Down

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.

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Comments

  1. Posted by Arjun Padalia on August 22, 2011 at 10:38 pm

    The equilateral triangle forming on SLV’s 1 year chart makes me extremely bullish on silver. Thinking a $60-70 dollar price target by the end of the year.

  2. Posted by Jeff on August 23, 2011 at 12:40 am

    Gold is going to crack and crack HARD, it’s just a matter of when….

    what do you think are some good trades to put on in anticipation?

  3. Posted by Abror on August 23, 2011 at 5:03 am

    Colour charts look good.

  4. Posted by Blain on August 23, 2011 at 11:09 am

    Arjun, interesting look. I would like to see a legitimate second peak price for Silver to construct the upper half of the triangle. Regardless, just to see Silver perform this well given the fall off is very impressive.

    Jeff, Gold will crack but the tipping point is anyone’s guess. The market can stay irrational longer we can stay solvent. Betting against Gold at this time is a high risk roll of the dice that I want to avoid.

    Abror, thank you for sharing!