The debt limit issue should be resolved soon.
Be ready.

On that note, that bearish 15-min TL in GDX is just nuts.

Rat, I added some lines to your 30 min DIG chart.
The brown and teal sets are same as yours.
I added the yellow - hitting its lml.
I added the cyan -- hitting its quartile.
I also added more fib retraces and found the 112, 190, 205.

If you take the trade, how will you look to enter? The close does not have good separation so I assume you'd want something more. Would you look for an abcd or first retest of an ml. Obviously I know you'd take an .886 on gap.

Just a thought, but I can't imagine the market not bouncing in here. Eight straight days down, right at the critical H&S breakdown point, retest of previous key lows, everyone watching... The only way I could make sense of more immediate downside is a stop run snap trap, or a meltdown on some vicious news, like the Friday non-farm payrolls being horrific. But, in 'the old days' of the last two years, bad news like that would mean more QE and more free money, and that would ramp the market...

Now those are great questions. I hope this turns into a nice trading sequence dialog.

Originally posted by tx_ches

Rat, I added some lines to your 30 min DIG chart.
The brown and teal sets are same as yours.
I added the yellow - hitting its lml.
I added the cyan -- hitting its quartile.
I also added more fib retraces and found the 112, 190, 205.

If you take the trade, how will you look to enter? The close does not have good separation so I assume you'd want something more. Would you look for an abcd or first retest of an ml. Obviously I know you'd take an .886 on gap.

Click image for original size

This is the kind of stuff that can start a currency crisis in a flash, and destroy your life savings overnight. It could also send gold way over $2,000, maybe $5,000, in that same night, or be the excuse for the market to tank big time. We are on the precipice again, folks, and any day a seminal, triggering event could happen. Things have been broken since the crisis (well, since before the crisis), then made way worse, and the inevitable pay the fiddler time will come. Nothing on earth or in the heavens can stop it. It's just mathematics. Sorry.

http://www.zerohedge.com/contributed/red-alert

In the meantime, while waiting on the end of the world as we know it, my 'viewpoint' here is long ES. Management approach would be somewhat tight trailing stop.

Quick bathroom stop and I came to check how that ES was looking, only to see gold hit 1675 (rounded), up about 60 from yesterday's LOD. Not bad. 1700 tomorrow, 1800 Friday? 2000 in the Sunday night/Monday session? I may be giving up sarcasm in here (I'm debating it), so I am serious about this possibly happening. Recall my next posted level at around 1716-1720, as it's a biggie.

Also note that I have a slew of upper lines this is starting to touch right in here. Finally, note that gold likes to make about 200 moves lately, and this move has now hit that 200 range off the July 1 low. That means, all things being normal (I think things are about to get abnormal), it is due for a checkback. If not, a blowoff move over the channel top may happen. Exciting times. Unfortunately, I think this may be signaling serious, serious trouble could be imminent...

Okay, back to bed, where I'll likely toss and turn wondering how things are going. Maybe I should pull an all-nighter...

great work ches....I really like seeing direct response on my chart...it helps to know what other people see of what you're looking at.

tradewise, now, is more of an exit than an entrance, since the convincing setup was the retest at the upper line....which doesn't mean I wouldn't look for a bounce trade, because I do...but I'm unfortunately away from trading for a good part of four weeks starting last week, so I can only looking knowing I won't touch

Originally posted by tx_ches

Rat, I added some lines to your 30 min DIG chart.
The brown and teal sets are same as yours.
I added the yellow - hitting its lml.
I added the cyan -- hitting its quartile.
I also added more fib retraces and found the 112, 190, 205.

If you take the trade, how will you look to enter? The close does not have good separation so I assume you'd want something more. Would you look for an abcd or first retest of an ml. Obviously I know you'd take an .886 on gap.

goneat target

Originally posted by tx_ches

Great job, Al. You caught a lot more things. You are good at drawing the SL. I particularly missed 2 even after drawing 1 and 3. You also caught many more .886. I particularly like your 6.

I thought this was a great exercise on how well the tools can work near a turn as joed has said. For myself, it also showed me that I had made some progress with the tools since the last time roofer gave a list of charts to try them on.

For the record, I did try Jim's two recent detailed postings on action, levels, and turns but gave up in frustration. I never know with his stuff if he means 240 min or 3 min.

Thanks, tx. I spend probably too much time looking at the smaller details and not enough scoping out the "bigger picture," like the turquoise line 4. Kane TD ABCD. That is a good one. I looked at your work and picked it up right away. I do not know if I would have seen it by myself. I need to spend more time looking at larger as well as smaller timeframes for larger Kane ABCDs and structure. Many times I have been mentally involved in a smaller scale pattern, and missed an easy, larger Kane ABCD. This work requires a lot of expertise. Please keep up the good work.

Thanks, roofer, for the invitation for us to try our hand at your techniques on the SLV chart. I am sure there are a large number of things that I missed.

Thanks, Jim, for hosting this forum and sharing your thoughts. There is surely a lot of your work that I don't "get," but I am working on it.

Good Trading,

Al Kamego