Be Careful - June 1, 2012

IWM pulled back down and reversed up just a few cents above the IWM robot trailing stop (75.02). Hence the IWM robot is still long and looking to enter a secondary long position today ar a limit of 76.11. But I must warn that I see mounting evidence of growing chaos and risks in this market and we may soon face some outlier move in any direction out of the sideways consolidation of the last 10 days. I’ve seldom found such extreme complexity and contradictory clues in trying to interpret the market’s potential risks and rewards on all timeframes. Taken in isolation, the multipivots and robot’s LT/ST settings are still pointing to an objective upside bias but we all know that many macro-political grey swans are ready to turn black and mad without any notice. Holding the initial position unless the stop is hit is certainly a good plan, but adding new long positions is becoming kind of adventurous so late after the initial buy signal. We are at the time limit when no more weakness should be tolerated. Trades that take too long to reward our risk-taking are usually ending in the red.

[ATTACH=CONFIG]14469[/ATTACH]

The GDX robot is still in cash. The PM MF was dropping fast near the close as my discretionary EOD stop at Weekly pivot (43.83) was hit and I am back in cash. Gold miners are stocks like all other stocks and they are probably exposed to the same uncertainties and complexities for now.
Billy

[ATTACH=CONFIG]14468[/ATTACH]