Gold & Commodities

The Gold & Commodities category is a sub-section of Market Analysis that includes charts and commentary associated with precious & industrial metals such as gold, silver, and copper as well as various hard & soft commodities such as oil, gas, wheat, corn, etc…

Mar 272015
 

Here are my thoughts as we head into the final 20 minutes of trading today. First off, my read on the very near-term outlook for the equity markets isn't clear enough to warrant taking home a sizable position & being exposed to the possibility of getting caught on the wrong side of a large gap (which is certainly a possibility due to the recent spike in volatility). I still favor a little more upside before a resumption of the near-term downtrend but to be safe, I will reduce the long exposure in the QQQ that I recent took to play the expected bounce. Just eying the charts, I could certainly see the possibility of one more thrust down, taking out yesterday's lows, before putting some positive divergences in place on the intraday charts which would then likely precede a decent tradeable bounce, maybe to backtest the recently broken bearish rising wedges on the QQQ and/or SPY daily charts.

I also continue to believe that the odds favor a resumption in the correction of the $USD and the rally in gold, silver & the mining sector. As mentioned earlier today, the $USD (via the UUP 30 minute chart posted earlier) does have the potential for a little more upside before reaching that downtrend line but the counter-trend bounce that I was looking for has likely ended with the tag of horizontal resistance earlier today. Remember, where the dollar goes is likely to have a direct impact on both equities & precious metals. As with my QQQ long bounce trade, I'm going to take home a relatively modest long position of NUGT but not enough to get hurt, should the miners gap down on Monday.

Have a great weekend.  -RP

 March 27, 2015 3:55 pm  Equity Market Analysis, Gold & Commodities Tagged with: , , , , , , ,
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