There's nothing to say about today, except of course if you enjoy stating the obvious by exclaiming that the Energy and Basic Materials sector decided to take a leap of faith and die a horrible, painful death... For the short term, at least.
Come on people!! If you honestly think that those incompetent monkeys on CNBC that get on the tube and say ridiculous things like, "Adding something from the Energy sector is a sin," are intelligent, then you are quite mistaken. Do yourself a favor and follow the steps below:
- Get a Twitter account
- Find my account - ZMoose12
- FOLLOW THE PEOPLE I FOLLOW AND GAIN A CONSIDERABLE AMOUNT OF MARKET KNOWLEDGE
I am SO sick of people that think they run show on Mother Market on television: Jim Cramer, Dennis Kneale, most of the female anchors on CNBC (minus Maria Bartiromo), and plenty of other morons. I'm not a genius, I'm not a professional analyst, and I am not an economist, but I know a thing or two about running your mouth when you should be keeping it shut (Charlie Gasparino, that's you big guy).
But enough of my raving. I've come to the conclusion that we're on the last leg of a developing head and shoulders price pattern within the $SPX on an hourly time frame. There are two ways to look at this head and shoulders price pattern, however, as there is a short term pattern and an intermediate term pattern. Let's breakdown both perspectives for this specific index:
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$SPX 20 Day, 60 Minute (Short Term Perspective)
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$SPX 6 Month, Daily (Intermediate Term Perspective)
We'll see if the short term $SPX perspective will hold tomorrow, for if there's a pop in the markets off the open with a strong $UVOL presence, be prepared to push the 923 level by the end of the week. If there's a failure to do so and we remain in the 888 - 897 $SPX range, then feet don't fail you now and don't let the door hit you on the ass on the way out to a full cash position (unless you feel the urge to go short). Also, if volume is light tomorrow and the market ends like it did today with oil finding support either through it's ascending trend line or through the $61 price, then another day is needed to test the short term $SPX perspective. All in all, time is a necessity to tell the direction of this here market.
My final lesson for this evening is the potential to begin moving into gold again as a hard asset, inflation hedge. I say this because I feel that in order to get out of this current $SPX chop-slumpiness, we need hard assets to drag us out and the dollar to inflate like a balloon, only to deflate later in the fall when oil begins to really push the envelope and drive it's price through the roof with coal, natural gas, and alternative energy to follow suit, respectively. Because of this theory, I present to you GLD:
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GLD 3 Month, Daily
With the possible double bottom being exposed, the next thing I'll show you is the trade I'll make if this GLD double bottom holds true:
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ABX 1 Year, Daily
As it holds its ascending trend line to the "T," I will wait patiently for a push towards higher prices in ABX so that I don't get caught in a trade I don't want to be in. Until then, sit on your trigger fingers and don't press the BUY button on that computer monitor.
That's all for tonight. I leave you with an updated version of my current holdings and a swell good evening. See ya'll during PreMarket!
Portfolio Holdings
- Stopped out of JASO @ 3.96 to take a -0.44, -10% loss.
- Added SNDK @ 13.84
ZM
Nice post. I will add you on Twitter. Just discovered the damn thing myself. Common wisdom says that gold miners lead the commodity so I will be watching GDX/GLD charts.