I hate markets like this–nothing is going on for a swing trader, and the day traders are gloating about the intraday moves. While I itch to make a trade, past experience tells me not to fire up the real time charts. Or, then I need to quit my day job because I find day trading far too consuming to focus on anything else. So, that said, I’m posting a daily and weekly chart of the SPY–both show price captured by the 200 EMA/SMA zone, and the coming squeeze as the volatility bands tighten. All I can say is that we’re going to get a nice move eventually, but direction is not clear yet.On the over hand, UGL (same pattern as the GLD), the Ultra long gold ETF chart shows a telltale sign that price has hit resistance and been rejected. If we get a lower close tomorrow or the next day that will confirm a false breakout and we should correct. Note that similar tests of resistance that were rejected declined quickly. My choice for a move lower will be GLL, the inverse gold ETF.

Last week, I made some comments about the Third Industrial Revolution. I posted a weekly chart of WFR, a solar company, in a Fallen Angel pattern as a 3IR idea. This is a pattern I learned from Alex, and one I trade as often as possible. WFR bounced 16% in the week. Note the buy day was a narrow range day that marked a higher low. The bullish MACD-H divergence on the weekly provided a very powerful push. Target is around 13 or the 200 SMA, and we should get a pullback before then that will allow new buys to enter. Sadly, it was not my Spike pick.

Since in Spike Trade we don’t trade bonds, or Yen, or country ETFs, I thought I would post a couple of charts for those interested. I do a great deal of ETF trading–they let me trade all over the world, in commodities, and in currencies efficiently. Alex commented on the possible top forming in the Yen as well as in bonds, so I thought I would post TBT the inverse bond ETF. This is a classic 1,2,3 Bottom and so is YCS, the inverse Yen ETF (not posted). I’m also including EWM, the most powerful of all country funds. EWM is about to break to a new yearly high, and probably test the ultimate high at 13. The pattern is a very rare quad-top breakout. In each, new buys should wait for pullbacks. In the case of TBT and YCS, look for them to decline back to value. For EWM, look for it to break out, then retest the breakout point. If it holds that would be the buy point. Just so you know, I’m long all three.

[I sent an email to Barry S who recommended shorting TSLA for two weekends in a row:”Barry – just curious – have you been able to short TSLA?I tried to day-trade it short through TradeStation, but the broker said ‘shares not available for shorting?’Thanksalex”]See Barry’s take on TSLA:Hi Alex.NO.I have tried to short it many times with TD Waterhouse (Canada) since it hit $30.00 but have had no hits regardless of quantity or timing. I continue to work on it.Sorry. It would have been nice for the two of us. My guess is that it will stay around the 17.00 IPO until they start running out of operating funds.It should drop another 50% while they run a second round of funding.However the all electric car is here to stay and we will see a major economic shift around it. OIL / gas/ etc. are a thing of the past. Look for a repeat of Ford’s economic contribution via the assembly line. The electric car business will boom on some quantum shift like the assembly line – not simply on the existing technology. All great “inventions” are merely a combination of two or three existing technologies. What needs to combine with the electric car to make it a go?This IPO highlights the monumental financial energy awaiting that leap.All the bestBarry

Alex’s post about shorting gold caught my eye since I am short gold via GLL, which is the ProShares 2x inverse ETF of gold. I use these inverse ETFs because I don’t trade futures. I went long GLL at Tuesday’s close based on the weekly chart divergences and the 1,2,3 Bottom on the daily chart. Target is around 45.

Dear SpikeTraders,While our group is primarily focused on the US stock market, many of us trade other markets as well. Occasionally one hears a loud bell from a market – and today I am writing to share one of such signals with you.First, let me state that I am a

Those of us involved with Spike should surely be grateful to Alex and Kerry for their generous and enduring insights–not the least of which was Alex’s prescient warning last week that the potential was strong for a market crack, which hit hard on Friday. Thanks, Alex, for a nice payday (though my short in Spike was a bust!).Another of Alex’s insights that I appreciate is his Fallen Angel pattern, which I think was first described in Trading for a Living. If you don’t know and love this pattern, reread the book, learn the pattern and hunt these beauties down, because they can be treasures. As a refresher, Fallen Angels were once strong momentum stocks that soared parabolically, only to crash and burn as the institutions left them for dead. If the company stays in business, then the stock tends to trade sideways for months, slowly mending, and building enormous bases. The pattern looks like an elongated “L” with the bottom much longer than the top. Eventually, institutions and investors circle back, as the value players slowly accumulated the shares. Then as other investors start to notice, they burst up one day, break their range and work their way up the right side. Many recover 50% or so from high to low.Fallen Angels make miserable trades as they go sideways, but great trades if you catch them as they break the range. Now that market has lost its goofy love affair with the financials is the time to search for them. In the weeks ahead, money will rotate out of the financials and gold and into value areas.There are many Fallen Angels in the energy sectors, particularly the solar guys–LDK, HOKU, SOL, ESLR, ASTI, FSLR; oils like BAS, ALJ, HES, and coals like JRCC. None that I have mentioned are ready to buy just yet. Put them on a watch list and look for them to edge above the flatlining 200 SMA, pop up and drift back to oversold on the daily.