The US$ was higher again today and that caused the oil and gold markets lower. While the gold rallied a bit from its lows around the $1,310 area it closed about mid-range. The bottom of the Bollinger Bands now come in around $1,304 with further support to $1,295, so unless the US$ continues strong, we should see a bounce to $1,330-35. Hopefully this won’t happen in the middle of the night and we can participate. At this point I’m more likely to buy the GLD 8/126.50 CALLS @ $1.65 for the bounce. I will text tomorrow if I see an opportunity.
The oil had no such luck and while it tried to rally, it just couldn’t hold more than minor advances during the day and has now touched the area I have been talking about at the $43.00 level. As I have been saying for a while now:
“As to the Oil, it continues to hold the lows @ $44.55-44.53 bottoms for the last 3 days.
It continues to hold (which I strongly doubt), It could easily rebound to $46.00-46.50.
I would still buy the SCO anywhere near $89-89.50 looking for a move well into the high $90s to $100. Should it break $95, $105-$110 would be an easy shot.”
The SCO has moved from my last purchase price of $89.58 to close today @ $102.47 and I would consider it a sale above $105. I can always rebuy it later.
The market internals again switched around with decliners outpacing advances by a ratio of 1859 to 1102 and volume 312MM down and 132MM up. Any close below S&P500 2152.14 would force a test of 2100-2120. I will also text an order if I see an opportunity for a low risk trade. CAM
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