2012

                                 Trade and prosper in 2012 !

3-long term bullish patterns in play

inverse H&S pattern

triangle-breakout

pitchfork uptrend in formation

                                                     

                                                             short-term pattern

                                                    C&H pattern

Now - The market needs to follow through soon and trade above last week's highs on some convincing volume. After that is testing and taking out the October highs to help provide positive price follow through of the current bullish technical patterns in place.

Watch for - More weakness and consolidation again this coming week,  especially into January options expiration week, and we could see yet another swing reversal all the way down to the 50dma.

for the week ahead, January 9th to 13th

               

http://www.youtube.com/watch?v=VbhsYC4gKy4

                                   http://www.youtube.com/v/S6N05To9Dy8

                     

Somebody said that it couldn't be done,
But he with a chuckle replied
That "maybe it couldn't," but he would be one
Who wouldn't say so till he'd tried.
So he buckled right in with the trace of a grin
on his face. If he worried he hid it.
He started to sing as he tackled the thing That couldn't be done, and he did it.
Somebody scoffed: "Oh, you'll never do that;
At least no one ever has done it";
But he took off his coat and he took off his hat,
And the first thing we knew he'd begun it.
With a lift of his chin and a bit of a grin,
Without any doubting or quiddit,
He started to sing as he tackled the thing
That couldn't be done, and he did it.
There are thousands to tell you it cannot be done,
There are thousands to prophesy failure;
There are thousands to point out to you one by one,
The dangers that wait to assail you.
But just buckle in with a bit of a grin,
Just take off your coat and go to it;
Just start to sing as you tackle the thing
That "cannot be done," and you'll do it.

by Edgar A. Guest

Gold ETF GLD breaks down through its 200-day moving average for the first time in 3 years

                                                     click on the chart to enlarge it

Is GLD's break through its 200-day moving average a sign that central banks may be too slow to print money (QE)?

monthly view

All Eyes On The Euro.

Question ? Do we get a Santa Rally or does the Grinch step in !

Like usual, I'll take my clues from the price action and the chart patterns that develop as we go and virtually ignore most everything else.

Pay Attention !

"The adage "A picture is worth a thousand words" refers to the idea that a complex idea can be conveyed with just a single still image.

 It also aptly characterizes one of the main goals of visualization, namely making it possible to absorb large amounts of data quickly."

Follow up on shipping.

Huge rally.

This was a monster follow through day and we settled at the bear trap line. It is do or die time for the bear camp. A break above the bear trap line and the balance of power will shift into full bull mode. Now it's time to be focused on the price and playing the patterns as they unfold and ignore everything else.

A technical guide:  Watch for " crawling along" or repeated bumping of minor or major trend lines and prepare to see such trend lines broken.

Central Banks ( FED ) agreed to provide cheaper dollar loans to the European Central Bank- which can then provide cheaper dollar loans to cash-strapped European banks.

As a result of bankers united effort markets gaped approximately 40 points right from the gate. What's next ? Well we'll see, and in the meantime re-read the below blog for some possible scenarios. What's the edge here ? PATIENCE - patiently waiting for your set up to show up and accepting being out of the market as "A" position OR slowly start building your position in small increments and pyramid up only if confirmed correct by the market, staying nimble and aware that anything can happen in this crazy environment.

The ideal situation_ _ _

The ideal situation would be to see a bounce that set up new shorts on the larger time-frames. We got the bounce today but it is important to remain patient at this juncture. 
Remain focused on longer time frame and wait patiently for your entry before getting involved.

                                weekly view

Cash is king !

Stay positive, pal. Most people, when they lose, they whine, they quit. But you gotta be there for the turns. Everybody's got good luck, everybody's got bad luck. Don't run when you lose, don't whine when it hurts. It's like the 1st grade, nobody likes a crybaby.

-Gordon Gekko

Range again.

The market has lots of room to move around and even have a holiday rally ( dead cat bounce ) without even coming close to negating the technical breakdown and follow through we have seen recently. There is an increased expectation  that another move lower will occur once oversold conditions are removed. Last Thursday's breakdown out of the triangle confirmed that near term market direction is down and for long-only position trader in growth stocks, cash is king.

Note:  Lots of hedge fund managers are selling their positions and going flat/bonds.

Bears did a good job today.

Watching triangle.

Remember, it isn’t the break of the pattern initially that is most important but the subsequent follow through that comes after it.

Follow up on shipping.

Today we crossed handle's high pivot point 41.42 level and our entry just above it. The bottom of the handle is approximately 10%  from the buy point, and just below this area is a good place to put a protective stop.
GLNG's earnings were $0.01 a share in 2010, with forecasts of $0.92 in 2011. and $1.75 in 2012. With focus on 2012's numbers and the 90% estimated earnings growth we can expect shares' price advancing further.

The information contained herein is for educational purposes only and is not, and should not be construed as an offer to hold, sell or an offer to buy any securities.

Coiling up !

Waiting to see break one way or the other, overall probability still favors an upside breakout. Technically speaking a triangle is continuation pattern. There is a good size move coming soon.

Waiting.

Trading volume is low today, and so far this sell off  is not convincing.

No one is winning so far.

Three patterns to watch.