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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • S & P - As We Were Saying... In Silver, As Well. 0 comments
    May 6, 2011 12:15 AM

    Thursday  5 May 2011

      The activity of many of the markets on Thursday was an historic
    one, most notably in silver and crude oil. Staying one step behind
    the market has its advantages, and untilizing developing market
    activity precludes the ego-driven need to "predict" what any given
    market will do.  We were looking for a pullback in the S&P,
    qualified by smaller ranges and lower volume.  [See S & P - One
    Swallow Does Not A Summer Make
    , click on http://bit.ly/msh5Zb,
    2nd and 3rd paragraphs].

     You can see from the ranges of the past three trading days, they
    became larger, not smaller, and volume increased, the opposite
    of what to expect when it was stated that a buying opportunity may
    present itself.  By watching developing market activity, there was
    no need to "predict."  We knew ahead of time what to look for; it
    just never developed.  Friday may be a different story, but until we
    see how price and volume unfold, no one can know if change will
    occur, or if the market will continue lower.


    S&P D 5 May 11

      We addressed staying one step behind, specifically in the silver
    market.  [See Silver - A Follow Up, click on http://bit.ly/jJ5rgg, 3rd
    paragraph], where we said a correction was likely, but we thought
    a trading range might develop.  One can be wrong in not knowing
    how a market will unfold, but not being in it allows for such "error"
    in assessment.  The concluding sentence, last paragraph of the
    same article, said to let the proverbial dust settle before jumping
    into the fray.  Things never settled as silver declined all the way
    down to the $34 handle, from near $50.

     The logic behind reading market activity most always gives some
    sign of change.  "Predicting" egos usually fail to see any sign, while
    those of us who endeavor to rely upon the market-generated
    information can most often avoid negative situations...not that we
    haven't been caught a few times in the grain markets by not reading
    the signs correctly.

     The markets will regain a level of safer trading.  One need only wait
    for the message[s] to appear.

     

    SIN D 5 May 11

    Themes: SnP, QQQQ, SPY, Dow, Silver, Metals
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