This week may provide some trading opportunities for us
if all goes well now that most traders are investors are all giddy about
stocks again. Last week we saw money move out of bonds and into stocks and
the bullishness vibe in the air reminds of many market peaks just before a
5%+ correction in stocks.
the SP500 unfolds we
may be going long or short equities, long precious metals, long bonds, and
our VXX trade may spike in our favor.
Bonds: After last week's strong move down in bonds as the
HERD moved out of bonds and into stocks it may be providing us an opportunity
to catch a dip or bounce in the price of bonds. If the stock market sees
strong selling this week money will run back into bonds.
precious metals it looks as
though gold, gold miners and silver may still head lower this week. The
charts are still bearish and pointing to another multi percent drop in value.
Gold will look bullish around $1600, Gold miners (GDX) around $48, and Silver
around $30 but we need to see one more wave of strong distribution selling
for that to take place.
Crude oil has recovered nicely from its 5 wave correction which
shook us out of the trade for a profit. I still like the chart for higher
prices but with it trading at resistance and a high possibility of sellers
stepping back in at this level I am not getting involved here.
The SP500 made a new high last night but has run into sellers
early this morning taking prices straight back down. The chart in pre-market
looks as though we will see lower stock prices later today and with any luck
the fear index (VIX) will continue to rise in our favor.
Gold and Oil Guy