2016 may also not be a good year, 8 years since 2008 and before then, another 8 years back we had the crash in 2000. Time will tell... 

Thanks, great, I hadn't paid attention to that it didn't impact the 1x.

Is there an inverse ETF to the GDX?

Great mech system Matt.

Isn't GDX just another ETF? It has been mentioned many times on BPT that ETFs aren't good to hold for longer periods.

Is there a better instrument to trade gold miners that doesn't degrade over time?

Is it only I that can not download those ELD and TSW files? That dropbox link just returns an error page for me.

Thanks for the video Matt!

MCP broke overbought levels on 144 Stochastics around 10 am after having hovered above 70 for the past 9 trading days. That was a nice indicator to go short.

I have followed MCP for the past 9 months. Fundamentally in the short term, it is still a hot one to follow but I see for the longer term that MCP will face tougher competition. Due to the export restrictions from China, many countries are now in the process of starting up new mines or re-opening mines shut down in the past. Thereby the supply of rare earth minerals to the world market will increase, thereby causing prices to decrease.

87% profitable over the past 4 years for long trades only.

Back tested results of a system is one thing, to run it in real-time and get the same results is another. There has not been much buzz or updates about the mechanical systems from BPT for a long time.

Ditch, what target would you suggest for UYM after the BO?

Possible short idea, about to lose support at 32, plus broken uptrend line since a few days back.

There was a Bearish Gartley on the 5 min S&P index as well yesterday. D happened just before the close.

Low at 1204.33 on the last 30 min bar. Close enough for Government. I suppose we need to see a new lower high before we run after more shorts. (Except for those guys going to FLA )

This peak might be another of those buy on the rumors (QE2) and sell on the fact. Anyone who can answer why the dollar is going up while the Fed is still printing a whole lot more of 'em?

What was the logic to select 233 minute bars and not for instance 240? Is this another of your hidden ace up your sleeves?

ERY peaked on 60.61 on Aug 26. That was followed by a drop down to 34.38 on Oct 25. It is now beginning to look as if the tide is turning again, meaning that one may consider going long in ERY or short ERX.

After purchasing the mechanical systems around the same time as samspiro, I quickly came to the same conclusions. What I have done instead since then was to develop a few swing trade systems using Stochastics on 5 min and daily charts. Some of the ETFs (ERY, ERX, TNA, TZA) works well using daily charts STO(21 periods) with a small degree of variation on the overbought and oversold levels. I am using that while waiting for volatility to heat up. Some other ETFs like SSO, SDS, QLD and ECD works also well on the 5 min charts but there I am only playing them in one direction, following the general trend of the market.

I am also convinced that once the VIX is going up, the BPT systems will be a great asset to have as a trader. I wish that I had owned these during the Autumn of 2008. However that kind of period will return one day, we can all be sure about that.

Then coming back to what Matt and Steve have posted many times about being unbiased to the market actions. Using mechanical systems have in some weird way helped me to reach that mental state of mind. It really helps to take out a lot of emotions.

Well it is evening here in Beijing and it is time for the 3rd beer. Happy trading!

Maybe too many have been focused on Gold lately? Now the press needs to find something new to write about. WSJ pointed out yesterday that this is a big concern for Japan who as always is depending on imports, that reward another 10% to the previous (at least 100%).

I'll continue following this with a stop-loss in place.

Up 11% today, most likely due to the article in WSJ today which has made more people aware of the situation we are getting in to. If anyone has missed it, China has put restrictions on exports of Rare Earth Minerals and if I recall right from WSJ, China controls 97% of the world's rare earth resources. Outside China there is an Australian company also producing this (name?) and an American company Molycorp (MCP). Since the restrictions were put in the place MCP has more than doubled the stock price. Apparently today, some felt that there is still room for further increase. Be warned though that this bubble can burst quickly if China decides to change the policy. Until then I ride along a few more days.

Looks like a breakout will happen next Monday. Up or down? Time will tell but looking at how the earnings are beginning to evolve, I have hunch it'll be to the up side. Let's see.