Too quick out of the gate

Now that's a trend! Gold for that last 5 years.

Have we found support for the Dow?

On Friday I bought some US shares in order to make a good start with the rally I was expecting. But I was too quick off the mark. It turned out that my analysis of the market was flawed. The interim support line that I guessed was the bottom of the channel did not hold. Nor did my original candidate for the task and the Dow ploughed straight trough both. But by the end of trading there had been a rally and the market ended some 20 points above the original support line. So the analysis looks sound for the moment.

I had an uncomfortable day watching my purchases tank. I held on nevertheless - foolish? maybe. Time will tell. With the FTSE rally this morning and encouraging futures for the DOW I moved further out onto the ice and bought some UK shares. This is playing a dangerous game but there is no point in doing these analyses and not acting on them. The big problem is deciding if and when I am wrong and need to throw in the towel. (The mixture of metaphors is deliberate).

Gold and silver are also a source of pain. This time I have in interest in holding gold because if the S hits the F I want to have this as my back up. I also believe that this pull back is part of a long term trend and I bough much of my present holdings towards the bottom of the pull back. I have shown a five year chart for gold to illustrate what a real trend looks like.