I've been warning that the next sector to fall to the bear would be the energy stocks and sure enough the XOI has now moved into a down trend. The oil service stocks are showing a double bottom breakdown. My guess is they will be following the rest of the energy sector soon.The third chart is the US coal index. This is what a parabolic collapse looks like.
While everything else is breaking down the PM and mining stocks are both entering uptrends. The XAU is currently sitting right on support. Now would be a low risk entry for miners with a stop two boxes down on the XAU chart.
Coincidentally gold is right in the middle of a timing band for a trading cycle low. I doubt that gold has too much downside from here.
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I got scorched on that RIG upgrade today, but I have that sucker in my sights for a rollover.
Looks like that crash trade is (was) working.
Gary, not sure how to figure out this charting format. For example, how come you didn't draw a blue trend line going up on the third low? There would be a failure of the triangle on the next low if you had done so which would have been a false signal. Thanks.
T
T,
I didn't draw the trendlines. That's just how the point and figure charts automatically calculate. If I remember right you can't annotate point and figure charts in stockcharts.
You mean there is no room for human intervention on judgment in these lines? What happened to freedom of speech and TA? I'll stick to the line charts. Thanks
One of the reasons I watch the point and figure charts is because they only deal with price. The daily noise is eliminated. Only the significant moves are charted.
Another reason I pay more attention to the weeklies than the daily charts. It's easy to get distracted by the daily squiggles.
Gary, I agree about the low-risk entry on PMs at this juncture. After posting late last night, I talked myself into adding to my silver position. I also really like how PMs are holding up with oil down $9 in two days.
As long as an investor understands the long term fundamentals and has a little patience there really is no need to ever be nervous when buying the PM.
Gary, do you notice the price of T-bonds has been slowly creeping up the last few weeks and in particular has been driving up the last week or so? Should this be happening if we are going to get a bounce?
We do have quite the mixed picture at the moment. I'm going to go over this tonight.
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