Tuesday, October 6, 2015

Oct 6 - Equities consolidation, gold miners catching a bid, potential oil breakout

Equities volume is pretty weak today and the short term indicators are jammed to the upside.  Still sitting in a small SDS position and willing to see what happens.

Gold miners catching a bid and fortunately my DUST order wasn't filled yesterday.  It could be a soft 'W' bottom but since gold miners/ GLD have disappointed so often maybe this once again is not the time.  That said, there is a strong amount of positive divergence on the daily and weekly and sooner or later it will trigger in a big way.

The 30 min chart very overbought.  You can see that big block of RSI green on the top.  Those things are usually resolved but there is still a chance a quick and mild pullback/ sideways action and back up.
 1 hr frame saying the same thing.
 Same for 2 hr albeit less overbought.
 The volume is very weak and right at resistance.  Risk to reward not a bad place to short although I have been impressed by the strong of this move up.
 GDX north of the upper BB.
USO looking very good here.  Volume is confirming.

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