Hard reality check to retail traders

Some time ago I posted how Gold and Silver were being sold by the media as the safe haven and a commodity that was touted for a major rise in value. My own analysis was this was nothing more than a male cow manure.

The truth came to the charts last week and see how both metals broke major numbers and in grand style. The retail traders who were loading up on both the ETF and physical holdings got burned bad.

I plotted a line at 1200 dollars which again the media said was strong support. Way over on the left of the chart you can barely see where historic buying came in, but the run is over and the real sentiment has finally dawned on the retailer.

Here is silver.

I commented where the red line is some time ago, about the guy on TV saying silver is at bargain prices and its a great time to buy. Hmm, more like a great time for him to sell into your long orders.

A reality check is the media are not your friends, wont ever be your friend and their cleverly worded shows further program the retail trader into making poor decisions. We know the chart doesnt lie and neither does history.

And just to make the point of major moves. Look at the Euro against GBP and USD.

Here the Euro fell hard over the past few weeks and the retail traders will be shorting like crazy. Look at the red line and what can you see?...look left. This is an S/R area and any break is best left go and wait for its return. Many pairs are now into high time frame areas of interest. I did say on my last post that we would soon see significant trading opportunities and here they come.

Here is the Euro and the Dollar.

It looks a lot like the above chart and is no fluke that a currency will hit high time potential turns at the same time against many other majors. Same red line with the same meaning. For the Euro to go against the long drop down, the ECB will have to come out with some major news.

I have some entry and scaling information to post up and I will try and get it done soon after this is posted.