Remain Defensive And Patient But Attentive To The Charts

by Olivier on June 7, 2010

More of the same. Lots of indecision and it is still almost impossible to put on profitable swing trades if you trade the market from the long side. What is worrisome is the fact there is not much fear and no signs of panic out there. This significantly increases the odds the markets are headed lower.

Not everything is looking bad though as Marc Faber recently pointed out in an interview stating that apart from all the gloom and doom: “The weather is nice here in New York.”

On a more serious note Babak, over at Trader’s Narrative makes the point that a positive divergence in the S&P Cumulative Advance Decline is developing and concludes: “This important divergence tells us that market internals are telegraphing a hidden strength in the S&P 500.”

A quick thought on the price of gold as Gold continues to creep higher and display true bull market characteristics. All time highs are bullish. Period. Until we don’t put in a series of lower lows you should forget about all the noise and stick to your physical gold position.


Remain defensive and patient. Avoid developing too strong an opinion. Always remain open and receptive to the message charts send out.

Soccer is a game for 22 people that run around, play the ball, and one referee who makes a slew of mistakes, and in the end Germany always wins. – Gary Lineker

My public list with all my charts can be viewed here:

Buenas noches!

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