Trading range.

I am impressed with the market this week as yesterday morning it squeezed out the shorts at the open and this morning is scared out the nervous longs. Those who are trading are chasing which adds scale to these swings.

Turnaround Tuesday.

Today we had a powerful rally and a first step necessary to provide a clue that the lows have some chance of holding. As we always do in these reversals, we will need to see additional follow through for confirmation, and we want to see robust performance in leading stocks accompanying the follow through day.

P.G. Trading Tribe starting in September 2011.

The Trading Tribe

is an association of people who commit to excellence,

personal growth, and supporting and receiving support from each other.

The members of the Trading Tribe 

trade roles, becoming, in turn senders and receivers for each other.

Mastery Includes The Trading Tribe Process. Going with the Trend. Right Livelihood. Support Network. Contributing to Others www.tradingtribe.com for more info about the TTP process go to http://www.seykota.com/tribe/TT_Process/index.htm  any questions regarding P.G. Tribe, email mtci@telus.net

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.