CNW has nice chart formations and characteristics in multiple time frames, i.e. daily, weekly and monthly. I entered yesterday and its more of a intermediate trade in terms of time frame. I'm looking for $38 to take some off the table and let the rest ride, until 4355 is hit by the $TRAN index.

Also posting a monthly chart of $TRAN index. I believe there is a magnet trade here and the magnet target is 4355, which is the teal line (50 week). Notice the last bear market action from 00-03, it constantly made attempts to get above it. I believe a first test of this moving average will happen sooner rather than later. Which is a another ancillary factor in my entering CNW. There should be some strength in transportation stocks until that target is hit.

CNW DAILY

CNW WEEKLY

CNW MONTHLY

$TRAN INDEX MONTHLY

I hear from a lot of people how the dollar's decline is over. Therefore I thought I would post a chart of FXE. From my perspective the up trend has not been compromised. Does it look like the up trend is broke? The purple line which is the 90d s.m.a just needs to be tested to cleanse out all the complacent and weak longs. Look back to 06-08 for some perspective. Also does it look like gold's long term trend has been compromised?

So we see FXE about test the 90 day. Numerous gold stocks are at the 90 day or approaching them, which also happens to be their long term upward trend lines. Add to that concoction that UUP is about to test its 90 day, which is down sloping and what you have is a nice chance to get long some gold and FXE and be part of the continuing up trend once it resumes from this current shake out.

Furthermore the dollar index or UUP has done nothing to confirm a break of its primary trend. Is a counter trend rally possible, sure, but I think its just about run its course, it can move a little higher from here. If you think about the dollar from a fundamental perspective there is no reason for it to change direction yet. There are so many reasons why it will stay weak. 

One final note December, January and February are historically very strong for gold.

FXE DAILY

UUP DAILY

AU DAILY

GG DAILY

Sorry for the lack of posts on my part. I had a bit of family emergency in the cancer arena. Therefore I thought I would show a chart of pharma stock that I love and own. What a beautiful long term chart this is. TEVA is on the cusp of a breakout. Now I'm normally very patient with this equity and buy it every time it hits the yellow line, which is the 200 week and I sell some of my position when warranted. I  will also buy breakouts for a short term swing trade and I believe TEVA is setting up for a nice quick push to a new all time high. How many stocks can you say that about in this environment.

Look at the charts for CCI, AMT, SBAC. They all formed a very similar bar yesterday. I like the fact that the whole group showed the same formations, which is a key signal to me and I believe a short term pull back is on its way. Now I'm not saying its a trend change and I will be reversing my position when the 30d or 50d s.m.a's are hit.

I marked an X above all the bars yesterday.