Drano: as mentioned...

I've been using stochastics as an approximation of the 7-8 day cycle. Used in concert with a trendline, it has been providing fairly reliable signals.

It's important not to frontrun it however, in the event that the market trends due to a larger cycle (I watch daily charts to get a sense of the larger prevailing trend).


Here are some examples from the energy complex:

As you can see, things look just about ready for a downturn. This is scam week however, so I wouldn't be surprised to see things pinned at these levels. Next week, I would expect the downside to begin. (Typically at these inflection points, I would expect to see either a gap n' crap to trap a few bulls, or simply a gap down to prevent bears from getting in at the peak.) Nevertheless, I will wait until the cycle clearly turns and the trendline is broken.

Well, in theory at least. Realistically, I'll probably frontrun it and get torched.

Hi Ho Silver: Pan American (PAAS) has been very synchronous:

In regards to the bigger picture aspect, I see potential for another big blowoff move on the long side of PAAS, hence I'm only looking at long positions even on the swing trades.

On the other hand, the XAU weekly chart (of which PAAS is a component) may be signalling otherwise. Should get an indication soon.

As you can see, on the daily/weekly charts, I'm fond of trendlines on the Relative Strength Index used in concert with cycle analysis a la Dr Stool for identifying the direction of the prevailing trend. (In theory, I want to swing trade only on the side of the prevailing trend.)

And here's what I mean when I say I expect Pigmen™ trickery at cycle turning points:

And the winner is..........drum roll........ slight gap down and heading straight down.