CHART SIGNALS & ANALYSIS
(2 months of time, 30 minute bars)
India Asks
America a Question
Dev Cheekock (Sprout)
email: dev@goldsproutprofits.com
posted Oct 3, 2011
Tactical Overview
I don't talk
a lot. I just buy and sell. I do want to weigh in on the question
of whether this is 2008 all over again. That's a question that
seems to be on most people's minds. The public sold a lot of
stock in August, and the gold community is very nervous about
what might happen in October with gold stocks.
I don't have any concerns that this is 2008 all over again, and
I think any gold market crash is coming later on in 2012, rather
than now in October. There seem to be two clear schools of thought.
One school believes it is 2008 all over again, and the other
believes the lows are in for gold, and we are about to go much
higher. I don't really agree with either view.
My concern is always for what is facing me today. Sometimes the
price of a market will fall below the range I forecast, but that
doesn't happen too often, and it only opens up a new and better
range of play. I am not that sure that the lows for gold are
in, but I doubt there is much downside if they fail.
My family background is from India. It's not really in our nature
to buy gold when it rises, and that's something that is hard
for the Western investor to understand. Most Western investors
have to learn to buy gold when it falls against the dollar, whereas
the Indian mentality is to instinctively buy it then. The recent
price decline attracted more attention than is really necessary.
The price of gold fell and opened up a buying opportunity.
If you didn't buy gold at $1700 or lower, you should not find
yourself buying it at the price of $1900 or higher, or you will
get yourself in big trouble. Look closely at the blue buy ranges
I highlight on the following charts, and the red ones. Focus
on those colors, rather than on theories about whether it is
2008 again or gold is about to go much higher.
The question that India has for America at this time in the gold
market is, "what did you do in this correction?"
GDX-NYSE (Senior & Intermediate Gold Stocks)
Click
here to view important buy and sell areas for GDX
Price Range. Projected 5 day range is $53
to $63.
In my model portfolio for subscribers, my GDX holding is now
3.61% of the total portfolio, which is solid.
RSI. The current reading for GDX is 45.63. The RSI is
now in a falling trend. In terms of valuation, it is currently
in a relatively neutral area.
Bollinger Bands (100,2). The current price of $55.19 for
GDX is near the middle Bollinger band. Buyers are likely to dominate
near the $54- $58 price area, and sellers near $60- $64.
Volume. Big buy volume should come into play near $50
and big sell volume near $70.
Sprouticator. I use a blue Sprouticator for buying and
a red one for selling. The current reading of 3 blue for GDX
indicates light buying by the pros.
GDX Summary: The price is relatively low. I would like
you to work in the $53 to $63 range that I project for the next
5 trading days.
The Bottom Line: Buy GDX around $54- $58. Sell around
$60- $64.
***
FXF-NYSE (Swiss
Franc)
Click
here to view important buy and sell areas for FXF
Price Range. My projected range for your
next 5 trading days is $100 to $120. In my model portfolio
for subscribers, my FXF holding is now 3.26% of the total portfolio,
which is aggressive.
RSI. The current reading for FXF is 34.16. The RSI is
now in a falling trend. In terms of valuation, it is currently
in a relatively low area.
Bollinger Bands (100,2). The current price of $109.05
for FXF is near the middle Bollinger band. Buyers are likely
to dominate near the $100- $110 price area, and sellers near
$115- $120.
Volume. Big buy volume should come into play near $100
and big sell volume near $140.
Sprouticator. The current reading of 3 blue for FXF indicates
light buying by the pros.
FXF Technical Summary: The price is relatively low. I
would like you to work in the $100 to $120 range that I project
for the next 5 trading days.
The Bottom Line: Buy FXF around $100- $110. Sell at $115-
$120.
***
XLE-NYSE (Senior
Energy Stocks)
Click
here to view important buy and sell areas for XLE
Price Range. My projected range for your
next 5 trading days is $58 to $68. In my model portfolio
for subscribers, my XLE holding is now 4.00% of the total portfolio,
which is an aggressive position.
RSI. The current reading for XLE is 32.23. The RSI is
now in a falling trend. In terms of valuation, it is in a relatively
low area.
Bollinger Bands (100,2). The current price of $58.51 for
XLE is near the middle Bollinger band. Buyers are likely to dominate
near the $58- $62 price area, and sellers near $65- $68.
Volume. Big buy volume should come into play near $40
and big sell volume near $80.
Sprouticator. The current reading of 3 blue for XLE indicates
light buying by the pros.
XLE Technical Summary: The price is relatively low. I
would like you to work in the $57- $67 range that I project for
the next 5 trading days.
The Bottom Line: Buy XLE around $58- $62. Sell around
$65 - $68.
***
DBC-NYSE (General Commodities ETF)
Click
here to view important buy and sell areas for DBC
Price Range. My projected range for your
next 5 trading days is $25- $30. In my model portfolio
for subscribers, my DBC holding is now a solid 3.33% of the total
portfolio.
RSI. The current reading for DBC is 25.74. The RSI is
now in a falling trend. In terms of valuation, it is currently
in a relatively low area.
Bollinger Bands (100,2). The current price of $25.75 for
DBC is near the lower Bollinger band. Buyers are likely to dominate
near the $25- $27 price area, and sellers near $28- $30.
Volume. Big buy volume should come into play near $24
and big sell volume near $31.
Sprouticator. The current reading of 3 blue for DBC indicates
light buying by the pros.
DBC Technical Summary: The price is low. I would like
you to work in the $25- $30 range that I project for the next
5 trading days.
Immediate action: Buy DBC around $25- $27. Sell around
$28- $30.
***
AEM-NYSE (Agnico
Eagle)
Click
here to view important buy and sell areas for AEM
Price Range. My projected range for your
next 5 trading days is $58 to $68. In my model portfolio
for subscribers, my AEM holding is now 3.27% of the total portfolio.
A 3.27% holding for any holding is solid.
RSI. The current reading for AEM is 40.50. The RSI is
now in a falling trend. In terms of valuation, the RSI is currently
in a relatively low area.
Bollinger Bands (100,2). The current price of $59.52 for
AEM is near the middle Bollinger band. Buyers are likely to dominate
near the $58- $62 price area, and sellers near $66- $70.
Volume. Big buy volume should come into play near $50
and big sell volume near $80.
Sprouticator. The current reading of 3 blue for AEM indicates
light buying by the pros.
AEM Technical Summary: The price is relatively low. I
would like you to work in the $58 to $68 range that I project
for the next 5 trading days. That's solid exposure.
Immediate action: Buy AEM around $58- $62. Sell around
$66- $70.
***
GG-NYSE (Goldcorp)
Click
here to view important buy and sell areas for GG
Price Range. My projected range for your
next 5 trading days is $43 to $53. In my model portfolio
for subscribers, my GG holding is now a solid 3.26% of the total
portfolio.
RSI. The current reading for GG is 53.63. The RSI is now
in a falling trend. In terms of valuation, the RSI is currently
in a relatively neutral area.
Bollinger Bands (100,2). The current price of $45.64
for GG is near the middle Bollinger band. Buyers are likely to
dominate near the $43- $46 price area, and sellers near $50-
$53.
Volume. Big buy volume should come into play near $40
and big sell volume near $60.
Sprouticator. The current reading of 2 blue for GG indicates
light buying by the pros.
GG Technical Summary: The price is relatively neutral.
I would like you to work in the $43- $53 range that I project
for the next 5 trading days.
Immediate action: Buy GG around $43- $46. Sell around
$50- $53.
Today's Sprout Seniors Portfolio is now posted on my website.
Make sure you check it every day. Next order of business is to
place some trades.
Disclosure: I own positions in GDX, FXF,
XLE, DBC, AEM, and GG.
###
Dev Cheekock (Sprout)
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Monday October 17, 2011
For 321Gold readers: Email me at testdrive@goldsproutprofits.com and I'll send you my micro gold
futures report and Bollinger bands report for gold and silver
futures. The standard COMEX gold futures contract is 100 ounces.
The mini contract is about 32 ounces. That is still fairly big
if you want to be able to hold a number of contracts, in most
cases. The recently-introduced micro contract is just 10 ounces,
and could be a game changer for the retail investor.
Dev Cheekock [Sprout]
website: www.goldsproutprofits.com
email: dev@goldsproutprofits.com
Click here
to subscribe to my service
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