Gold Fever?
Better
trading days ahead? If
Friday was any indication, I would say yes, but as is typical of this market, it
seems to always do the opposite of what you think, at critical junctures.
The daily charts of both the S&P and Nasdaq futures have broken
support and may accelerate to the downside, (see charts below).
The cross in the
MACD further confirms the move. However,
this market has been throwing curve balls. And with the Fed meeting on Tuesday
don’t be surprised by euphoric moves to the upside.
Still, the continued weakness in the dollar and the fact that this
economy is showing no signs of recovering, despite what CNBC and the analysts
say, is starting to resonate with Wall Street. Valuations
are still far too high, and until there is complete capitulation, this market
will continue to tease traders. I say
bring on the panic selling and move forward.
Gold?
The last time I remember gold stocks being worth trading was when I first
got involved with daytrading back in 1994. While
I don’t suspect they will ever trade the way they did back then, they are
garnering attention due to the dollar crisis and did show up on some of my
filters this weekend. While these stocks
do not appear “scalpable†they may offer some interesting position and
intra-day trades.
The
two gold stocks with decent range and liquidity are Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating)
and Barrick Resources
(
ABX |
Quote |
Chart |
News |
PowerRating). Both
daily charts have interesting formations, and are trading around their
50% retracement with above average volume.
Intraday, it appears that they set-up relatively well with a simple
stochastic crossover to determine entry and exit points based on a 15-minute
chart.
Expect today to be
typical of pre-Fed trading days. Good trading in the first hour with little
activity the remainder of the day as traders and money managers square
positions. Futures are mixed currently, with the S&Ps at new lows.
| Key Technical Numbers |
|
| S&Ps | Nasdaq |
| 1185 | 1573 |
| 1175.47 | 1560 |
| 1168.5 | 1549.67 |
| 1156.93 | 1534.33 |
| 1148 | 1520 |
| 1131 | 1490 |
| 1466 |
Thought
For The Week
“It
was never my thinking that made big money for me.
It was always my sitting. Got
that? My sitting tight waiting for the
exact moment to strike!†Edwin
Lefevre — Reminiscences of a Stock Operator
.
As
always, feel free to send me your comments and questions. See you in TradersWire
Interactive..
Dave
