Friday, July 25, 2014

Some ideas for ya'll on the weekly charts

Several stocks I follow with some being commented on on other blogs are being shown here for everyone's benefit. A major breakdown of the Euro (FXE) has taken place. My friend at Trading Channels raised this possibility a month ago.

I wrote in a previous article how insecure I am about the state of the Chinese economy, even adding in the article that the overall configuration was "bullish." My pessimism shouldn't get in the way of making profits. Remember that the market can remain irrational longer than you can remain liquid. We have not seen any healthy corrections so I guess China is going to remain 'irrational.'

If I had more money I would be short precious metals (I have to credit The Rabbit Hole for this one). Looking at the miners they also look like a good "short" at the moment. Notice however that another ascending triangle appears to be developing. We have a series of higher lows plus a resistance line at both $46.00 and $55.00. There are two ascending triangles developing (potentially), one inside the other. If we break-out of $46.00 we'll still need two taps to get out above $55.00.

Jakob Richardson © 2014