Will the DJI fall to 10000 or is it still stuck in it's channel?

DJI 3 October 2011

COW plods happily on. It is at this stage that I start to think I wish I'd put more into this position. I start to agonise. Is it too late to up my stake? Will it turn round and wipe out my profits twice as fast if I do? That's how I torture myself at this point in a trade.... I have decided to go for it and added to my position.

All of this and more goes through my mind as gold starts to move upward. But my heart is in this one and gold looks like a bargain to me. So does silver but this is far more frightening because of the size and speed of moves. I have bought more of both today.

Then there are the indices. I have drawn two sides of a triangle on the DJI chart and the bottom one was pierced at the start of trading but the price action has returned inside the triangle after touching my lower support line. I am now watching for a piercing of of both of those support lines. If they do I will reopen my shorts and wait for the touching of the 10600 level. If it bounces I shall take profits on my shorts If it goes through I shall work on the assumption that another big slide will follow, with the next stopping point at 10000. So we wait for a more salubrious entry either higher up or a bit lower down. STOP PRESS A sharp move down is beginning, the lower support line is breached and I will open a small short.

My current asset distribution is: Gold and Silver 35%, Commodity 5% (including that bit more more COW), cash 60%.


Fabulous weekend weather is enough to cheer us all up here in little old England.