The market internals reversed themselves on Wednesday as the tech sector made some major headway with MSFT reporting better than expected numbers and FB moving another all-time high.
The US$ index edged a bit higher and the Gold made exactly the move we discussed in the Tuesday night / Wednesday morning note.
“The GLD may have a little rally off the last 4 days but the chart looks a little “diving boardish.” On an unchanged or slightly higher open I would be a buyer of the 8/125.50 @ market. If you don’t trade options, I’d short the GLD and use a buy stop over the market @ $129.29 on a close only basis.”
Unfortunately we didn’t get a chance to put on either trade since the gold traded up overnight and then turned lower and by the time of the NY opening it was lower and gapped down but it was a text book chart.
I expect that it will test $1,308 it may well test the bottom of the Bollinger Bands near 1,290-1295.
As to the Oil, it turned on a dime and so far the futures have exactly match the lows at $44.55. I would still buy the SCO anywhere near $86.50-$87 looking for a move well into the $90s.
I would also place an order for AA anywhere near $10.26 OB, or the 8/$10.50 calls @$ .26 OB…CAM
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