Off to another week of trading and once again we’re seeing more
strength following last week’s volatility. All pretty normal for now,
but we’ll see if the major indices can follow through on what we’re
seeing today.
At this point, the NASDAQ continues to lag that of the S&P 500
and the DOW – with the latter two trying to make new highs already on
the morning. However, considering the NASDAQ has been the clear leader
for years now, it’s going to be the NASDAQ we’ll keep a close eye on
early this week.
It’s still possible the S&P 500 can find its way to our near-term target of 2,500 first, but the NASDAQ is going to have to break convincingly above roughly 6,255 if we’re going to be convinced the index can continue its thrusting ways higher.
As you can see in this daily chart of the Composite below, we’ve pointed to this morning’s open, but it’s hard to see because it literally opened right smack on the 3X3 DMA (blue line). You can also see we’ve pointed to the 6,255 level, which is a very key short-term retracement level.
The bottom line is it will be that 6,255 level on the NASDAQ Composite we’ll keep a close eye on, because in the event the index breaks down around that level, it will suggest a potentially sharp move lower, despite the S&P 500 and the DOW’s strength lately.
Conversely, a sharp break above that level, and we’ll most likely get our 2,500 target on the S&P 500.
As it stands right now, we’d be very surprised not to see the NASDAQ find its way to that 6,255 level. But, it will be at that point we’ll want to see how the index reacts – especially now that we’re kicking off another new options period today.
Gold continues lower for the time being, and although we do still believe the primary ETF tracking gold in GLD is going to find its way down around roughly $113, it would be no surprise to see a relief rally any day now.
As you can see on this daily chart of GLD here, it’s been a miserable few weeks for the precious metal. However, with some very key displaced moving averages having already been taken out to the downside – and now that the ETF has found its way to a key retracement level – there’s a good chance gold will stage some sort of relief rally soon.
It would be on the heels of any sort of relief rally we’ll probably suggest a potential short via entering into DGLD or DUST, two primary bearish leveraged ETF’s tracking the price of gold and gold junior miners respectively.
As for oil, no real signs of any sort of significant strength yet, so we’re still convinced the price of crude will find its way to that $37 per barrel level. However, you can see in the daily chart here we’ve pointed to its previous short-term low, and considering it has gotten away from its 3X3 DMA (blue line) to the downside, a move back to the 3X3 DMA would be in order here. That would put oil somewhere right around $45 and change.
Much like gold, it would be on the retracement we’d consider traders get short oil via SCO or another bearish leveraged oil ETF, but if you’ve been short ever since we suggested it weeks ago, there’s no need to toy with the already profitable trade. Just make sure you trail your gains with a SSL that protects those gains, while still giving the idea some room to work for you.
It’s still possible the S&P 500 can find its way to our near-term target of 2,500 first, but the NASDAQ is going to have to break convincingly above roughly 6,255 if we’re going to be convinced the index can continue its thrusting ways higher.
As you can see in this daily chart of the Composite below, we’ve pointed to this morning’s open, but it’s hard to see because it literally opened right smack on the 3X3 DMA (blue line). You can also see we’ve pointed to the 6,255 level, which is a very key short-term retracement level.
The bottom line is it will be that 6,255 level on the NASDAQ Composite we’ll keep a close eye on, because in the event the index breaks down around that level, it will suggest a potentially sharp move lower, despite the S&P 500 and the DOW’s strength lately.
Conversely, a sharp break above that level, and we’ll most likely get our 2,500 target on the S&P 500.
As it stands right now, we’d be very surprised not to see the NASDAQ find its way to that 6,255 level. But, it will be at that point we’ll want to see how the index reacts – especially now that we’re kicking off another new options period today.
Gold continues lower for the time being, and although we do still believe the primary ETF tracking gold in GLD is going to find its way down around roughly $113, it would be no surprise to see a relief rally any day now.
As you can see on this daily chart of GLD here, it’s been a miserable few weeks for the precious metal. However, with some very key displaced moving averages having already been taken out to the downside – and now that the ETF has found its way to a key retracement level – there’s a good chance gold will stage some sort of relief rally soon.
It would be on the heels of any sort of relief rally we’ll probably suggest a potential short via entering into DGLD or DUST, two primary bearish leveraged ETF’s tracking the price of gold and gold junior miners respectively.
As for oil, no real signs of any sort of significant strength yet, so we’re still convinced the price of crude will find its way to that $37 per barrel level. However, you can see in the daily chart here we’ve pointed to its previous short-term low, and considering it has gotten away from its 3X3 DMA (blue line) to the downside, a move back to the 3X3 DMA would be in order here. That would put oil somewhere right around $45 and change.
Much like gold, it would be on the retracement we’d consider traders get short oil via SCO or another bearish leveraged oil ETF, but if you’ve been short ever since we suggested it weeks ago, there’s no need to toy with the already profitable trade. Just make sure you trail your gains with a SSL that protects those gains, while still giving the idea some room to work for you.
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