Stocks and Precious Metals Charts - Wash and Rinse Complete

 

And so the wash and rinse completes its cycle. 

Stocks were up sharply today. 

After having bounced off their key Fibonacci retracement levels. 

This was a 'tactical correction' in my books. 

Those worries about inflation were mostly hoo-haw and clickbait. 

Those year-over-year comparisons are going to be distorted since this time last year we were in the teeth of covidageddon. 

Even the month over month have to be read carefully now because of the sharpness of the vaccine deployment in the US.

The key actor is the Fed. 

Everything else is noise. 

Gold and silver both rallied to below breakout resistance, with gold leading the charge. 

The Dollar fell back down towards 90. 

See, that wasn't so bad. 

I posted some intraday charts showing the placing of gold and silver to the breakout levels, because The Forester People of Spokane asked.   

What can you say about such nice folks with exquisite taste in vehicles?

 Let's see what antics the Wall Street wiseguys will have for us next week. 

Have a pleasant weekend.

Big Charts - Have Gold and Silver Broken Out?

 

Close but no cigar even from a look at the simple daily charts with the retracements.

From the main chart in the 'Babson style' not shown, gold must take out and hold 1850.

On the weekly chart not shown, silver must take out and hold 28 and then move to take out 30 to truly break higher.

Big Chart - SP 500 In the Babson Style

 

Here is a shot of the SP 500 chart in its original size.

You can more easily see the bounce off the 50% fibonacci retracement.

I have mixed feelings about that 'gap' on the chart.   

The futures are a more volatile animal than the cash market.

These are the charts as I use them each day   I also have the ability to 'zoom in' on even the smallest sections.

I take no money for this.    I don't need it and enjoy independence.  

It is just sharing of ideas.

I am just showing the charts as I use them for my own investment/trading, with some additional comments.

I have been using this 'Babson' charting method since 2002. 

It's funny but I had forgotten that early on in this blog I used to title the posts 'Charts in the Babson style.' 

He did not provide a written description of his method. 

I made it my own, with a foundation of classic charting techniques, from some general comments about the principles he followed. 

He did provide a list of trading commandments that are worth considering.

But I cannot stress enough, that it is not the charts that make the trade, but the trader.

So be careful what kinds of nonsense you put in your trading mind.

See you after the close.

Stocks and Precious Metals Charts - Bounce

 Stocks bounced back up today as the PPI came in reassuringly milder than the steaming hot CPI.

Gold and silver gained back some ground as well.

The Dollar chopped sideways.

I marked the fibonacci retracement levels on the charts.

Have a pleasant evening.