Index’s are following the path laid out in last weeks report, Gold is proving why it was the key target with the dollar now rolling over, and the bond market is starting to create some fear behind the scenes. Lets dive in.
Index’s
Spy pulled back to initial support but still has the unfilled gap below 760 that could be a good zone to target.
For overnight, watch 7746 and 7734 for rejections levels or breakouts.
Nasdaq tagged the upside target and came to a halt
Overall, I think we could tag that 760 area on SPY before another move higher but NVDA earnings next week likely is the key. I like to sell rips and sell flushes for now when it comes to the index’s.
Speaking of NVDA, still in no mans land. A tag of 733 before earnings is a short, a tag of 212 before earnings is likely a buy.
Gold
The GLD trade has been one of the best of the year, but at this stage for my long option positions I am selling rips until we have a good pullback. Yesterday for example there was a nice retrace and overnight calls doubled. The fundamental story is strong but from a trader mindset, greed on short term positions is not something I am looking to have.
But, the setup continues to look really good
The dip was bought yesterday that helped confirm the upside move today
The other piece of this is the dollar rejected near that same resistance level I have been sharing for quite some time now. This adds fuel for precious metals.
Bonds
The bond market has been hitting levels not seen since 2007 (great year), which sounds scary but the market really hasn’t flinched (yet). This is what I am watching for TLT, a potential scare setting an all time low under 80 that is likely a buying opportunity as capitulation hits. The other path shows the breakout today above the 20D, its possible the bottom is in.
Individual Stocks
Our long term positions continue to do well, lets dive into some charts and key levels
