Although the stock market went up yesterday with the DOW up over 300 points off of the open, not much is really happening as the stock market is almost exactly where it was two weeks ago. That may be about to change.
The stock market has been drifting to cause the volatility to shrink. This is causing the 20-day Bollinger Bands technical analysis indicator to squeeze. This action suggests that a larger move in the market is now going to come start Friday or next week. Paying attention to indicators like this is useful to get a feel for the action in the market.
While all of this is happening at the same gold went up again Thursday with many large mining stocks making new highs for the year. These are the big gainers in the markets outperforming the market averages.
Successful trading is about patterns and setups. The single best setup I have ever used I call The Two Fold Formula. You can find my book about it here.
-Mike
