I AM at the Apex

Despite the impressive run in the precious metals during the past few quarters, the large cap gold miners have been notable laggards. As an example, IAMGOLD (IAG) has been the definition of “dead money” over the previous thirteen months, despite being nearly a tenbagger off of its November, 2008 bottom. On its face, this underperformance has caused even the most socially awkward and disturbing of gold bugs to stay away from the large cap gold plays and, instead, focus on the junior miners.

However, a closer look at the IAG weekly chart reveals a textbook symmetrical triangle, spanning over a year. The symmetrical triangle is generally considered to be a neutral pattern, despite having strong bullish undertones. With increasingly tighter price action, volatility tends to shrink as it nears the apex. We can see from the weekly chart below that the past year of broad compression is likely to end soon in the form of a violent explosion. Given the narrowing nature of a symmetrical triangle, the presumption is that this is a massive consolidation pattern, rather than a topping one.

Only time will tell, but I suspect that the large cap gold miners have successfully lulled the vast majority of traders to sleep, and are poised to wake up themselves in the not too distant future.

(Disclosure: I have no position in IAG)

____________

Plenty of excellent sites out there include more macro commentary in their links, namely Downtown Josh Brown and Abnormal Returns. I thought I’d share a “Traders Only” collection. Here are the traders that I have been reading today (click on links):

• Joe’s morning morsel.
• @wwwstockrake on Brazil stocks.
• “The Goat,” @gtotoy, with his excellent daily read on the $SPY
• Position Trader’s chart of the day.
• Vic’s intraday market stats
• Vj’s daily, original analysis. Check him out.

There are plenty of other key sources that I check everyday, so be sure to look on the right hand side of your screen for my “Recommended Links.”

______________

MARKET WRAP UP 01/13/11

Despite closing off of the worst levels of session, we had another trading session of blasé action. With the S&P 500 finishing down 0.17% to 1283, you got the sense that the market was holding its collective breath in front of INTC and JPM earnings. At the time of this writing, I see that INTC is higher in moonlight trading. Keep in mind that INTC, the chipmaker bellwether, has seen its post-earnings bounces faded rather aggressively over the past several quarters. With that said, the broad market is still technically sound, even if the underlying enthusiasm and energy are not particularly impressive. Attempting to call a major top has not only been a waste of time and capital, but it also had been uncorroborated with the charts of the leading indices and sectors, seen below.

Indeed, no trend lasts forever, but when too many market players acknowledge that we are extended and ripe for a buyable dip, the net result is a daily drip higher that is starting to frustrate just about everyone watching the tape which, oh by the way, is exactly Mr. Market’s modus operandi.

______________

______________

______________

______________

______________

______________

___________

Plenty of excellent sites out there include more macro commentary in their links, namely Downtown Josh Brown and Abnormal Returns. I thought I’d share a “Traders Only” collection. Here are the traders that I have been reading today (click on links):

• @TraderStewie gives four stocks to watch, going forward.
• “The Goat,” @gtotoy with his excellent daily read on the $SPY
• Maribeth’s actionable daily watchlist and charts
• Position Trader’s on how to trade gap ups.
• Vic’s intraday market stats
• Vj’s daily, original analysis. Check him out.
• Finally, John Welsh is the definition of value-added with his DVD series.

There are plenty of other key sources that I check everyday, so be sure to look on the right hand side of your screen for my “Recommended Links.”

At the conclusion of our second full month, the 12631 Trading Group inside The PPT is growing at breakneck speed. By far, the most distinguishing aspect of our community continues to be our core members rapidly developing into excellent traders. The educational components of the combined 467 posts to date (including videos, charts, etc.) that RaginCajun and I have made are paying dividends and having a material impact on our members’ market knowledge and success. While many other premium services would become nervous with this development, fearing a mass Exodus of those who wish to do it all by themselves, RaginCajun and I both welcome our members’ success and also view it as a sure sign that 12631 has truly arrived.

Much like a winning Division 1 college football program steeped in tradition, we do not cringe at the thought of going through a rebuilding process in the event our top members move on. Instead, we will simply “reload” and continue to build a contagiously winning atmosphere that extrapolates on The PPT algorithm. Of course, with over 230 active subscribers to date, we suspect that even our most improved and talented traders will not, in fact, move on. Rather, we believe they truly value the work ethic, knowledge, and discipline for which the 12631 team stands.

As a reminder, 12631 is only open to members of The PPT. So, be sure to click here for details and decide if being on our winning team is right for you (See my video at the bottom of The PPT informational page, guiding you through the inner workings of The PPT service).