It may be a good idea to closely monitor the metals futures markets.
They may be the next group to experience a strong pullback.
(Energy futures got beat up yesterday.)
Tighten stops if long in the metals and start looking for day trade room shorts today.
Copper in particular looks vulnerable. Gold and silver somewhat too.
9:10AM, Wednesday, August 16, 2006-- Gold and Silver New York Metals futures contracts recovered a little bit since the previous post. Palladium potentially has an attractive setup here if it can hold its low of four days ago. Monitor to see if these NY metal futures continues to stabilize or remains in a defensive correction phase. That will determine how one can trade back into this futures or stock segment.
Friday, Sept 1, 2006-- I have been holding a longer term small position in TIE and have been monitoring DT Profile to signal new buy setups in it. It may be time to start focusing on precious and base metals again after a prolonged pullback/pausing period. Most are technically still contained in triangular patterns. Silver and Palladium, however are not and are looking very attractive right now.
Phelps Dodge Corp. (PD) has an interesting DT Profile showing PAand SD trades.
I have been tracking the recent SD buy trade in
Coeur d'Alene Mines Corp. (
CDE) It had a similar setup to the
GT contrarian play posted earlier this month. I think this trade will exceed its target, and as more strength returns to this stock regains momentum it will once again identify more quality room setups in the next couple months.
Last week I was reviewing ideas how to once again start to get Long in some metal stocks. Here is a creative way to use an existing PB room buy setup in BHP to attempt a small trade where I used our programs 41.88 Buy Trigger to get in, but I then placed my own stop loss below the previous 40.90 and 40.23 immediate pivot supports. The original program Sell stop at 32.64 is too far away to justify this trade, but the logic to get Long is a legitimate idea. Notice how the PC and PB rooms have decent strength bars and very high RF's of +15 and +12. The PC, PB, PA Trade Balance rooms show good growing normal to moderate phase analysis. Now I will manage the trade somewhat on my own, but try to the very best of my ability to continue to tie it into DT Profile as it evolves. If this stock accumulates more strength again, as I believe that should start to become more evident, then I will use future trades to piggy back off in addition to this PB trade parameter.
I am going to stay longer with this CDE trade shown last week. The next pullback or pause I will attempt to take any new trade idea that correlates with this current SD room trade as a way of adding back some of the original position.
The
Phelps Dodge PA and
SD room Buy trades I posted in this thread (
click here to see) last week are doing well today. I would stay Long, a portion of the SD hit its target this morning, move a trailing stop to below the initial breakeven 91.35 area. Then, if today's gap gets covered I would try to attempt the next Phelps Dodge buy signal as a way of adding back some of the previous position and managing to stay Long in this trend that is in progress using existing and future DT room trades. I think odds are respectable Phelps Dodge has ability to work back to the previous 100+ area in the near term.
I posted last week in this thread a heads up on metals. Keep monitoring this sector/group for future setups in coming weeks.
Marc Rinehart Wrote:Friday, Sept 1, 2006-- I have been holding a longer term small position in TIE and have been monitoring DT Profile to signal new buy setups in it. It may be time to start focusing on precious and base metals again after a prolonged pullback/pausing period. Most are technically still contained in triangular patterns. Silver and Palladium, however are not and are looking very attractive right now.
NY metals have reversed and I am stopped out of those trades I tried to milk a little extra profit out of. Standing aside and reappraising the situation.