Dec. 16, 2009 Tutorial: Opportunities Big and Small

When looking for camouflage entry possibilities, we should bear in mind that the opportunity manifest in a small pattern will never exceed that of the larger pattern surrounding it. This was a concern when we considered charts for February Gold and the E-Mini S&Ps. Both said “higher,” but not before corrective patterns in each had run their course. We also looked at T-Bond futures and found reason to wait for further, significant weakness before we step in to buy.