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Anyone notice what the “Patterns have been suggesting we should do” of late? Below is a small summary of suggestions from last week….
Widest Spread between the Nasdaq 100 and the VXN in almost 10 years, with the NDX at a potential “Double Top” (see post here). Game Plan…Don’t own the NDX 100, pick up VXX if so inclined! (most aggressive way to score on defense possible!) This spread reflected the market is EXTREMELY OVERVALUED!
Is a 100% gain enough? Soft commodities and Grains were breaking almost vertical support. Game Plan…Don’t own the grains, if so inclined pick up AGA (2x Inverse Grain ETF) . (see post here)
Crude Oil is facing long-term resistance (see post here)….Game Plan…Don’t own Crude Oil, if so inclined pick up DUG (2x inverse oil stock ETF). Could pick up DTO as well.
Silver facing key fibonacci resistance, after almost vertical climb…Game Plan…Don’t own Silver at this resistance (see post here) For those so inclined you can pick up ZSL (2x inverse Silver ETF).
CNBC did an interview with Jeremy Grantham last week, where he highlighted that having “CASH” provides investors with “Optionality!” Having cash can do two things: protection during declines and it allows investors to take advantage of declines. (see interview here) Very good BIG PICTURE interview!
My basic game plan/beliefs…Continue to “harvest (raise cash) up against resistance!” Not losing monies in a market decline, is VERY IMPORTANT!!! Attempting to score on defense is a personal choice and for aggressive investors only…
See what the “eye chart” is suggesting for investors to do? Read what it says!
Summary of the patterns …Score on defense in Nasdaq 100 (stock), score on defense in the Grains, Score on defense in Crude Oil, score on defense in Silver. These positions are what the “patterns are suggesting”, not a personal opinion. All of these positions are owned with stops.
A hearty hear-hear to TomA’s comments about Chris. I have a number of bookshelves bent with books on trading and investing. None are clearer than Chris’ efforts. And on top of that is the constant generousity of his time to educate, elucidate and communicate with those of use who have become his students.
I also don’t know Chris, but with respect I send him thanks.
Regards
Alan
The author of this blog is not Chris Kimble….his real name is really Kris Kringle. Yes, Christmas is here early. Being in cash, even better, shorting the market is yet another gift from this generous man.
The number of analysts, books, and experts that I have studied is longer than my arm. My educational journey is far from complete, but it is clear from what I have learned so far, Chris is in a league by himself.
Chris’ greatest gift….dramatically reducing FUD, fear uncertainty and doubt. Chris makes reading charts simple, even fun. His keen eye for identifying buying positions at support and resistance combined with consistent coaching to place stops has inflated my portfolio and I am sure many others.
So Merry Christmas to all those who frequent this blog 🙂
Cheers,
Tom
PS: I don’t know Chris, never met the man. But in the past four months of following his blog I have become a fan.
Chris, as for myshelf you are not boring us. The more i learn the more i would agree the currencies are precursers to where we are head in stocks and commodities. Thanks for your input it is spot on.
Sam…Thank you. I suspect that I have bored you and the majority of viewers, yet I remain of the opinion if we can get the currencies correct we can really do well. I have been attempting to share that the dollar looked a ton more bullish than most would give it credit for, that is why I have bored everyone with so darn many dollar charts!
You are right Sam that it is all about “risk management!” great comment!!! Scoring on defense is a whole seperate subject, yet a little fun when it works! 😉
Jeff,
Those are huge unfilled gaps…keep in mind, unfilled gaps go all the way down to $18 and also keep in mind the bottom of the big “rising channel!”
Hey Doug…Not idea, yet I don’t think it is too late. Example…The NDX/VXN spread is close the biggest in 10-YEARS…doubt that one week wiped out that situation. Some of the softs and grains are up 50-100%, wouldn’t think one week wiped out the excess pricing situation. Dollar reflected only 3% bulls, took months to get into this “uncrowded” sentiment situation and will take a while to unwind!
Chris – Got into VXX and a big thank you for that. As of now is it too late for any of the other short ETFs? Are they close to your pocket change targets, or is a bigger reversal at hand?
Chris – great calls. I followed your suggestion on VXX. Now I’m debating whether or not to add more to the position…
Chris,
Your comments on your last silver post pointed out the unfilled gaps that exist between 24 and 25 on SLV.
Would you suggest closing the ZSL trade once SLV approaches 24, or is there another retracement level I should be looking at?
Thanks again.
Best Regards
JB
Good call kimble. The one who was listening to your message would have taken the sidelines, rather than risk facing key resistences. Its all about risk management. You have been giving the signals for many days now. Having cash in hand would help indeed in these times, as one could average down at key supports again.
Good call on silver and ag; I’ve picked up both and doing well given your advice. This market is not taking prisoners if you’re long.