Sunday, November 23, 2014

Nov 24 - Chance of consolidation/ reversal coming in SPY

Friday although gapping up big, printed a black reversal candle with higher volume near the upper Bollinger. This has been a pretty good signal to go short for 1-3 days but heading into the shortened week this may be a less reliable signal.  So there exists this is a short term 'blow-off' top that would lead to some long-awaited correction or consolidation.  Went short via SDS at close on Friday with a modest position because the risk of a big move up on Monday would be probably limited.

The HYG/ SPY short setup discussed earlier in the week is still not there yet.

Gold miners continue to consolidate in a bullish manner and possible the next leg up happens within a few days.  On the other hand, GLD could be in a rising wedge though.  It has been pretty good about dropping upon hitting the upper trendline so will be watching to see if this turns into just a channel in next week or two.

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Jun 19 - Set up of the year in financials

I am heavily long calls in $C, $BAC, $JPM for late Jun, July, Aug.  Mad conviction here.