From KhronoStock.com contributor Andrew Cardwell.
Cardwell RSI EDGE
Trader Diary Notes
10/09/09
Stock Futures–
The initial signs that a market is ready to roll over will usually show up as resistance around the
60 level on the hourly charts. I will be watching for resistance at the 60 level or failed PR targets or
resistance at the PRT level itself. I will be especially alert today for intraday PCRP’s on the short term charts to start forming overhead resistance levels. Also note that today is the 9th of the month so we could have made a high yesterday or today and I will be watching for at the least a trading top
and possibly the signs for an intermediate top.
Gold–
The market has gotten a bit ahead of itself. You can now see why I have been bullish for so long and the move up we have had is just the beginning. A correction has been overdue and I think is welcome allowihg the market to adjust before starting anothe leg higher. A corrective selloff down to $1030 to $1015 would work off the overbought situation and off new buying opportunities. Back in June in Pasadena at the “Trader’s Expo”, many of the so called analysts and experts were calling for the demise of the gold market saying the top was in and it would not go back above $1000. Now the question is will it go below $1000 before it tops $1200 and then $1500. I am staying with my targets of $1150 by the end of the year and $1500 longer term (probably by June – August).
Bonds-
Decemeber T bonds ar starting to look toppy to me. Looking at the charts there was a short term PR target at 123.07 which the market could not surpass and should now be considered a key resistance level. I am watching for a good entry point at which to establish a good short position.
