Left is silver from earlier this year and right is gold
I have some faith in the contrarian method and when noticing that the local newspaper that hardly ever covers the market had a full black front page with spx charted on it i was pretty sure it was going to be an up day. I think however that we will now start to digest the big move and have some wild swings ahead before next major direction is decided.
A look at how much prices has been streched lately
Im about as dumb as they come and have not done well in the past few weeks, i got complacent and we all know what the price for that is. I have been thinking over the weekend about the Retail vs. SmartMoney thing, i was just wondering when does the day come when “Retail” will no longer mean Buy&Holders but isntead anyone who uses basic Ta.
If we ge a retest of the lows today on a lower volume, then i think a bounce is in the works, perhaps up to the neckline and 200dma (but thats what the “Retail” targets so…).
So, heres a Retails (thats me) view of things:
Heres a monthly spx chart made up of economist covers, just wanted to see how the media sentiment changes as the markets roll along. I plan to do weekly chart next for more detailed picture.
Large scale here: http://minus.com/ljCImE