$SLV seems to have tricked us after bouncing and closing above the 50 WMA last week.  That's good news and it appears SLV will be gaining steam this week as it rides up trend channel.  If $SLV closes above the 50 WMA this week, then I'd see we're in the clear until we're not.

Blow chunks, suck donkey dick, or  whatever metaphor you want to use if it breaks through and closes below $1.35.  Could it be temporary? I don't know but the daily chart (not shown in this post) already shows the 50 DMA below the 200 DMA and gaining traction.

The weekly chart has the 50 WMA awfully close to the 200 WMA and getting closer.

$DNDN is routinely making all time highs and the question I pose this morning is, would you buy it now?

 A lot of people are scared to buy all time highs. They think that since its at an all time high, it can't go higher and maybe its run its course.  

From the weekly chart you can see that it just keeps on making all time highs. 

But the reality is that ONE day it will have reached its all time high and then sell off. The real question then becomes, when has it truly reached its all time high?  No one knows the answer to that question!

So the moral of THIS story is to always use a stop IF you buy an all time high, because you never know if THAT all time high was ITS last!

$SLV is acting strangely again. A warning flag came up in my model that the trend might be breaking down in this ETF BUT it sure looked that way back in July 2009 as well.  Then it broke below the channel but stopped at the 50 week moving average. This time it poked and closed below the 50 week moving average.

Is $SLV tricking us again?  What do you think? If you leave a comment, I'll reveal my answer…

$RFV was a winner for me. In fact it was my largest winner in the bunch, clocking in over 12% or about +3R.  However, it got taken out via a stop on 1/21/10 as the market looked like it started to rollover.  

Rules of the trend system: Always use stops and strict money management.  Let the market decide when its time to quit.

I entered Visa ($V) back on 12/22/09 after it made an all time high, with heavy volume, the day before.  It then went sideways for a month and I was finally taken out on 1/22, right below its 50 DMA.  I did manage to move my stop a bit higher over the course of this trade, per my trend system, but lost -0.7R on this one.  Such is life I guess…

I wonder if Chris got taken out of V on Friday as well?

I've been posting a few candlestick chart scans and asking my readers, "would you buy them" here and now or just posting some basic commentary about them being screwed.  Let's take a look at how one of them faired after I wrote about them. Today's review is $NEP, which made a wicked hanging man on Jan 7th, and I thought it was in trouble based on its parabolic move and then hanging man.

Well it was in trouble, see how's breaking down from here? I think its gunning for the $8 area…

I got taken out in FDM yesterday after riding a bit of its trend.  I made money on this one, about 8.5%.  Not too shabby.

And yesterday out of a total of 5 positions.  One position was a good gain (FDM) but the others added up to slight losses; add them all up and I'm down only $5.  I'm not upset, just satisfied my system is working.  Of course I'd hope for more of a gain but sometimes break even is just as good.

Well would you punk?  BIDU made a gap up under heavy volume after the anouncement that Google might leave China.  The first candlestick after the news was a hammer at the top of a resistance line, which brought out the Bears.  But the Bulls broke through that resistance the very next day with vigor.  So, would you buy BIDU here?

PMCS made a hammer on its daily chart, right at the 200 DMA.  Hammers at the bottom of a trend channel are usually an indicator of a trend change.  This assumes some heavy volume, which with PMCS is questionable.  Volume is greater than the day before where we see a gap down, but not as big as when the dam broke back on 10/25.

So we'll look to the weekly chart for additional clues.

It looks like the wick of the hammer is wick on the red filled candle for PMCS this week.  Its testing the 50 WMA on about average volume.  I suspect that PMCS will test this lower boundary of $7.97 again, and possibly go through it because the hammer formation IS NOT convincing to me.

Well would you?  It made an all time high on Friday but the volume isn't overly impressive, relatively speaking.  Well would you buy it?