Oct 24, 2012

Just a few updated charts for tonight updating the progress of the dollar top and metals bottom. One thing to note is that SPY topped the list of BOW numbers today. GLD remained in the top 10 and was near the top yesterday.

Money Flows - Buying on Weakness


Gold:

GDX:

GDX broke to the downside of it's bear formation. Tomorrow we will need to confirm a follow through or see if this becomes a bear trap.

Silver:

Silver broke below the 38.2% fibo level and below the 50 DMA. The next level of support for silver comes in at $31 at the 200 DMA. This should prove to be very strong support.

Here's a near term look at silver's falling wedge. This is a reversal pattern that will signal a bottom once it breaks.

Stocks:

SPY is stuck between levels of support. It's broken below the 50 DMA and has remained there, but it has not found any more support at a fibo level, etc. It will take some more time to play this one out.

Dollar:

The Dollar is progressing slowly.. but still progressing. The 50 DMA may prove to be the top seeing how sluggish it behaved today as it neared that level. I'll watch one more day before jumping into any positions. Notice how yesterday's candle was the breakout candle and today's candle back tested the breakout. This is pretty textbook. Look for more upside tomorrow. Perhaps this can finish off the metals.

Sentiment:

Nuetral to bearish on Metals and Stocks. There's still some room to wiggle as the dollar finds it's way. Once the dollar turns, it'll be time to buy.