Wednesday, May 13, 2015

May 13 - Chop, chop, til you drop

Exited SPY long this morning for a very minor gain, maybe 30 bps and am now flat equities but I did pick up a GLD long as it broke out of its consolidation pattern.  The set up looks very promising and quite similar to the spike back in Dec/ Jan 2015.

Equities are churning and at end of day today, I couldn't find an excuse to pick a direction but the longer the market holds on here, the more likely we like grind up to the upside.  There is still a chance that this broadening wedge in SPY breaks up and out.

It is possible that we revisit the yellow zone that provided strong support that last time around.  Given how violent the snap backs have been in both directions, I am leaning towards things stabilizing and moving up albeit not by much over the bear case.
Still grinding sideways.  

 Potential target in 120 for GLD.
The weekly frame looks extremely promising and upside up to where the stochs have maxed out previously.


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