Trader’s Narrative

As I expected, today gold stocks rebounded sharply from their oversold levels. The intraday price action in Glamis Gold is a good example of how one can key off longer term technical indicators but trade in a very short time frame intraday. This provides a context above and beyond the usual short term entry signal. […]

The Bullish Percent for a sector or index is created by counting the number of stocks within the sector or index that are currently trading with a point and figure buy signal and dividing this by the total number of stocks in that sector or index.
Overbought levels are at 70% and above, while oversold levels […]

Gold stocks (as measured by the Gold Bugs Index) have now closed down for eight consecutive trading days. This has taken the HUI from a high of 400 to striking distance of 300.

The good news is that the bullish sentiment that accompanied the recent highs in the gold index, has for the most part evaporated […]

Petrochina gapped down below the $109 support area (on the daily chart) and put in a down first candle. The second candle was even more negative being a wide ranging candle that closed almost at its low. This was the expansion phase.
The next two candles were both inside candles and they were each narrower than […]

The most recent COT (Commitments of Traders) report which covers the recent market downturn is out and it paints a troubling picture for the market going ahead. As you know, the COT shows a snapshot of the three major market participants: small speculators, large speculators, and commercials.
We would expect that after such a steep […]