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Like most people who end up with their own blog, I have become overwhelmed with the job of managing information. I subscribe to numerous feeds and literally swim as hard as I can just to stay up to date. Many people I know have asked about where I source my news and commentary and it becomes an awkward, unwieldy experience trying to encapsulate a cogent reply. So this blog is my attempt to point people to a single place where information I follow flows. My blog list is very extensive and I have tried to whittle it down substantially. I am also on the prowl for more blogs, therefore all recommendations will be highly valued! I have daily feed straight to this site some of my favorite content. Daily review of Mish Shedlock, Nathan Martin, Jim Sinclair, GATA, and Martin Armstrong are essential IMO and will be posted here. Also, I endeavor to provide weekly Technical Analysis of Gold, Silver, US Dollar, and select markets. I hope to provide some with an exposure to technical analysis, and at the same time hone my own skills. Also, I will be adding commentary to the daily feeds from other sources. In time, this will be the primary focus of my blog as frequent visitors will channel feeds appearing here directly to their own sites and will come here for either analysis or commentary. I hope you find some utility here and it serves you well out there in the Matrix!

Tuesday, May 25, 2010

Daily Elder Impulse System

GDX rallied hard into the close after looking pretty lackluster all day. Sure enough the Elder Impulse chart painted a blue bar. This means either the MACD histogram slope is positive or price is above the 13 day EMA. In this case, and as usual, the MACD went positive first. We are .57 away from the 13 day EMA and a resulting green bar (both price above EMA and positive histogram slope.) I like the fact that volume increased from yesterday and confirmed a stochastic cross.

I put together a high delta (.90) trade and filled the GDX Jan 11 35.0 Call at 15.80. I am getting 90% + of the underlying price movement for a third of the cost, therefore triple the leverage. Resistance is coming in around 54.0 where the previous high is along with the Bollinger band. My price objective is 54.0 or about an 8% appreciation in stock price. I expect the option premium to be 20.55 or an increase of 30%.

via StockCharts.com

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