Tuesday, December 20, 2016 4:54:53 PM
Gold charts.
GB (anybody remember him?) used to call this a "stronger pincher." A pincher is a highly distressed stock, usually setting new lows. The stronger pincher concept is considered stronger, because the pps is on a retrace and the ppo/adx is pinching hard, yet not an all time low and as highly distressed (or likely to go belly up).
I studied it for quite some time and feel it's a tradeable bounce, going against the trend on the backside of a head and shoulder top. IOW-it's where the shorts cover, but the trend doesn't necessarily reverse at that point. In fact, very few do, without going thru the bottoming process.
This first chart is the pincher chart. Looks extremely oversold. In all likelihood, a long entry here would probably result in a chance at a profitable trade, although I think it will gap down tomorrow. The second chart is the GLD daily, with a longer term view. That chart clearly shows the trend.
For the record, I've been shorting gold and covered the majority of my position. I still have a small portion left. I have a feeling it will gap down to around $107 in the morning before the shorts cover and make it pop.
GB (anybody remember him?) used to call this a "stronger pincher." A pincher is a highly distressed stock, usually setting new lows. The stronger pincher concept is considered stronger, because the pps is on a retrace and the ppo/adx is pinching hard, yet not an all time low and as highly distressed (or likely to go belly up).
I studied it for quite some time and feel it's a tradeable bounce, going against the trend on the backside of a head and shoulder top. IOW-it's where the shorts cover, but the trend doesn't necessarily reverse at that point. In fact, very few do, without going thru the bottoming process.
This first chart is the pincher chart. Looks extremely oversold. In all likelihood, a long entry here would probably result in a chance at a profitable trade, although I think it will gap down tomorrow. The second chart is the GLD daily, with a longer term view. That chart clearly shows the trend.
For the record, I've been shorting gold and covered the majority of my position. I still have a small portion left. I have a feeling it will gap down to around $107 in the morning before the shorts cover and make it pop.
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