Looking at the week ahead.

We have a negative seasonal bias for Monday and neutral the rest of the week.


There is  a positive bias after Jackson Hole meeting and an end of month type rally is common.


Bernanke's speech on Friday is a major market catalyst.


I believe there is no low-risk, high-reward trade in ether direction at this time and expecting higher than normal volatility to continue for some time.


There is lots of noise around us and we must focus on price/volume action rather than listening about fundamentals, technicals and sentiment. Focus on price action alone, it will let you know when and what to do.


I like this quote : "Rather than focusing on what you might have done,  focus on what you can and will do instead." 


Make it a great week !

Silver trade.

Silver has lagged gold over the last month, but usually will outperform gold by a factor of 2 to 4 times in an uptrend, and drop faster than gold by 2 to 4 times in a downtrend. Since silver can be considered a hybrid metal, as both an investment metal and an industrial metal, this explains why while silver has not fallen while other industrial commodities have plunged. A new buy point in silver is at intermediate high of 41.19 in SLV. Keep in mind that should the stock market have another meltdown, the price of silver would get hurt more than the price of gold. So always keep your sell stops in line with your risk tolerance levels, and position size accordingly.

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.

Some simple solutions presented by Dr. Tharp whose work I recommend to anyone wanting to expend their knowledge about trading

When you are stuck, the more effort you put into trying to un-stick yourself, the worse off you become. It’s a little like being stuck in quicksand—the more you struggle the quicker you sink. The first solution is always to relax and often move slightly in the direction that is opposite to what your instincts tell you. For example, a pilot going into a nosedive must first push gently into the dive to get air flowing under the wings properly. At that point he can begin to control the airplane. Similarly, when you start to skid in your car, you must first steer into the skid until you gain control over the car—which our natural reaction is to do the opposite.

If you are stuck in your goal of becoming an excellent trader, try doing the opposite of your instincts. If you must take a trade, make it okay not to take the trade. Instead, move toward working on your emotions.

The second solution is to focus on what you want. When you focus on limitations, you feel the emotions of the stop sign or the limitation. When you focus on what you want to achieve, then you begin to see possibilities and new resources that open you up. What is your focus?

Finally, the third solution is to focus on being what you want to be. If you want to be a great trader, don’t focus on what they have or do, focus on their state of being. What is it like to be a great trader? What is it like to step into their shoes?

Daily view SP-500.

                                              We are in a downtrend. Be short or out.

Remember, No Position Is A Position Neutral.

If your plan calls for taking a step back and waiting you must listen, observe and wait for the market conditions to become conducive to your strategy. If you don't have a plan then it's time to create one for yourself. If you need help, ask for it.
Look at the SP-500 chart above.
There's nothing magical about technical analysis--at least the way
I approach it. The market went sideways for most of the year. It
broke down out of that range. On rallies, those who bought during
that range will likely look to get out. It's human nature. That
selling will cause the market to drop.
Am I sure? No. No one everknows for sure but this is the logical way to play it.

It is very important to remember that the market conditions change and we are going to have plenty of opportunity to make lots of money soon. Stay patient, positive and ready as the markets can change on a dime.