Here's where price and the trend line are now:
The green trend line represents the bulls and the next few days are shaping up to be some fun market action to watch. With the election on Tuesday it's too early to say who will win Pres. Obama or Gov. Romney, or bulls or bears. I may try some quick day trades in the futures but nothing too heavy until after the election. I'd advise any and all small investors or traders to wait until the close of Wednesday's market before doing anything substantial in your trading account. The market will tell us what to do on that day. If the green line breaks on heavy volume we know to get short. We may have to wait for a test of the green line before getting too short but a break there says get short. I'll be doing all this through the $NQ_f futures contract.
A break of the red line on the up side says the opposite and we should get long. I don't care who wins the Presidential election. I only care what the market does in reaction to whomever wins the Presidential election.
Something similar can be seen on the $YG_f chart. The trend line starts in June this year and the last touch was in August 2012. Here's that data:
I think this will continue unless or until a real plan for growth is laid out by policy makers around the world. That growth will have to be driven by money printing as credit has reached it's peak and organic growth is anemic still. I just can't see the economies of the world going Austrian any time soon. Even with a Romney/Ryan win and even with a Bernanke replacement I can't see the powers that be allowing interest rates to rise. and if that's the case there will still be printing. So, while we do see genuine weakness in precious metals this may prove to be a buying opportunity more than a flat out sell.
Look what the two trend lines on the $YG_f form as time passes:
But that may be too good to be true. It may be a little too perfect. So here are some levels to trade in case we see further down side in $YG_f:
That's it for now traders but let me leave you by saying what I always say +1. Good luck and happy hunting and trust the market not the headlines!