Second Failure of 50 Day Moving Average, Possible Shorting Opportunity
There are key points and days to consider heavily when following markets and deciding which direction to play. If you study charts you are able to see patterns that repeat themselves over and over again.
One key shorting opportunity that I have seen before major market declines is the second failure of the 50 day moving average. Today's nasty reversal where it closed down after being up for most of the day fits this criteria especially when it coincides with the failure of the 50 day moving average.
The volume was above average and this leads me to once again be bearish on the market. Now is the time to short or buy inverse etf's such as REW or SH to protect against another decline. It is not wise to be long this market. Trailing stops should be monitored closely. Now is the time to short not when the market reaches new lows.
Gold mining stocks will be monitored closely.
Tweet
Author: Jeb Handwerger
Jeb Handwerger
http://goldstocktrades.com
I started reading charts at eleven years old. One day my father, a market trader and technician found his library of books on technical analysis mysteriously disappearing. He later found the textbooks under my bed. For many years day and night I studied technical analysis and charting, working and learning from my father who has over 50 years of trading experience. Technical analysis is my passion and love.
In 2001, I started noticing the junior mining stocks and gold as having a tremendous upside. For the past 9 years I have researched many juniors and have identified the major winners using technical analysis and finding top management.
I earned a Bachelors Degree in Mathematics and a Masters Degree. I learned most of my technical analysis from the school of hard knocks, managing real money for myself and for my family.
Constantly perfecting my craft, I have traded for two decades of success in many different markets. I have been asked to post ideas to some of my students who have taken my course in charting and technical analysis. I have made an excellent living trading stocks for myself.
Investing in stocks is risky and could result in losing money.
I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence. I am not an investment adviser. I invest my own money in the stocks I suggest. I am an investor communicating my opinion of the markets with other investors. I will be straight-forward and honest.
I am not a promoter cloaked as an analyst. Unlike some other "advisory" services I do NOT accept payment in ANY form from the stocks that I mention be it in cash, options or equities. I am free and independent of any taint or conflict of interest. Simply check their disclaimer statement as mandated by the SEC for your protection. It might be a revelation to you or at least "let the buyer beware".
Sign up for my free newsletter where I will post my "up to the minute" ideas and analysis of the markets. Comment and ask questions as we are all learning and growing. Empower yourself and learn how to anticipate opportunities.
All material on my newsletter and blog is copyrighted. I do not mind you sharing my information and work as long as you cite Gold Stock Trades.
Copyright © 2010-2012 Jeb Handwerger
Circle Us