As expected per this Monday post and Tuesday post, the indexes rallied strong and are heading into seasonally favorable period. This could be exaggerated further by fund managers adding onto their already strong returns for the year. QQQ looks ready to break previous highs and challenge its upper trendline by January.
USO printed some huge volume which is probably a short term bottom or in the stages of creating one. With $WTIC at around $55, that is fairly close to an inflation adjusted price of $48 at the 2009 bottom which was around $40. If oil falls to $45-50, I would be looking at making some long term bets.
GLD looking fairly wobbly and hasn't bounced like I had expected. It is managing to move up but in a very wobbly manner and with the gold miners showing major negative divergence, it could be telling us something.
HYG although bouncing strongly, continues to display strong negative divergence to SPY. Something to think about if we enter a deeper correction down the line.
Sunday, December 21, 2014
I have been stopped out twice in last few weeks trying to short GLD. I have a pretty sizeable position of Nov/ Dec GLD/ GDX puts. Also ha...
I am liking the set up for XLE a lot now and XBI I am hoping for some settling so I can board the train. Maybe within 1-2 weeks? Missed ...
Didn't make any changes Fri except close the GLD short as the miners + silver started showing strength and an oversold signal on the 2 h...