I think I like gold stocks going into this week. Specifically, gold mining seems to be coming through support and it is much stronger than the rest of the market right now. There are some very aggressive 3x ETFs out there, NUGT being one of them. I actually like GDX, which is not as highly leveraged and moves a bit slower. I’m planning to mix these. I may trade options on GDX and buy a small position in NUGT. The …Read the full article
Friday was a bloodbath in the market. We finally broke through the resistance band around 2815 on the SPX mid-week last week and then immediately pulled back down just below it. As you can see from the chart below, this area has been a popular support level over the past 6 months or so. Keep an eye on this area this week. If the SPX begins to gain negative momentum here, it could easily fall through support and keep falling. …Read the full article
We’re still playing with the same resistance level that we have been working through the last few weeks. If I’m betting, I think that we get a green market this week. I’ve got a stater position in PZZA. I’ll be adding to it before the end of the day if all looks good.
I did not place a trade today. With last week being the worst trading week so far in 2019, there wasn’t much on the momentum scanners and it wasn’t clear what the market was going to do. Boeing had bad news this week, which also threw off market futures on the dow so futures were very spread. The market crushed it today. +40 points on the S&P. I think this is a good sign that we will test the 2800 …Read the full article
All, The market is teetering in a very awkward spot. Check out this chart of the SPX and notice that the double-top is right at the line where we’ve previously stopped. This is a perfect example of how a previous peak becomes resistance: The IWM shows a different pattern. Note that there aren’t crisp peaks at resistance, but rather, lower peaks and then a test of resistance from last week: We won’t sit here forever and either the buyers or …Read the full article