How Economies Collapse

Why selecting Best Performing Sector is Important

This results shows why selecting the best performing sector on our ETF portfolio is important. 

With ETFs you can get into any sector(s) that are out there.. Commodities, Currencies, Stock Sectors.  

Start your study with Intermarket Analysis and then boil it down to 2 or 3 important sectors that are working. Today you can see the currencies especially a strong King Dollar against the EURO.. 

Full disclosure: I am long UUP since past couple days. 

50 Day MA pattern. - Very Recurring theme in the market

Some of you have requested that I post some charts related to the 50 day Bullish pattern vs 50 day Bearish Pattern.

You can use this with Stochastics to see the bearish or bullish pattern.

Bearish Pattern like the one we saw in Silver during last couple days.

Silver Futures- Classic 50 D SMA failure..

Classic 1 -2 -3 Wave.... Futures.. cut thru 20 -50 and go to 100 SMA or Fibo and wave 2 rebound back to 50d SMA and then fail and getting ready for wave 3.. for a move back to 200d SMA or 150d SMA

Happy Hunting.. Silver and Oil.

Let this setup happen.....

You can trade this in following ways

1) Buy a PUT option 

2) Sell a Put Spread - Sell deep in the Money puts and buy at the money PUT

3) Sell a Call spread. - Sell Deep in the money call and buy a at the money Call

4) Short the Shares naked or with a call.

Other ways to trade this would be with other brothers and sisters of Silver commodity which are SLV, EXK, ZSL etc.

This is setting up for 1-2-3 Wave correction. The 1st wave happened and 2nd Wave will have this ETF bounce back to up to 50 day MA and then fail over there. So wait patiently to shoot this point blank..

There might be a similar setup in Crude Oil.

How to add Custom Scans in ThinkorSwim

DOJI at TOP: Pattern to Burn in Your Head

Today I am writing about some of the signals that means a whole lot than any other signals. You should be getting out as soon as you see this kind of signal. 

We are talking about DOJI at the top 

This signal has more than 400 years of history. Japanese rice traders developed the system 

period.  In mid 1700,  Kosaku Kato (1716 - 1803) was born in the city of Sakata, now Tamagata

His mastery of the rice market price movements was popularized in verses such as: "When it shines in Sakata (the growing region) it’s cloudy in Dojima."  English translation means when there is good weather in Sakata, the prices fall on the Dojima exchange. "And in Edo (Tokyo), it rains." Rice prices plummet there.

Not going into details of how they invented, we want to use this signal to our benefit.  Hence I am posting these charts for you to burn in your head.  Whenever you see this Signal, get out. It can be very dangerous to your accounts when you hold these assets especially after a Parabolic move up. 

Recent example is AGQ  which is 3x Silver commodity. 

Portfolio Update New ETFs.

Lots of churning got stopped out of DGP, DRN and now I am in HHH and EWL.

ETF Update

Sold BRF and got into EDC in anticaption of a a breakout.

Not getting into UCO at this time as other ETFs showing more strength.