The Sector The Smart Money Is Buying
Let me just come out and
say it, I am having writers block this morning. I could not think of
any solid material last night. My thought? Get some sleep and maybe some ideas
will come to me in the morning. Well, that did not work.
So, I apologize. However, let’s take an
objective look at this market, it continues to wrestle with a decisive breakout
(yes we have moved higher, but it has been a slow process) and solid set-ups
appear mainly on the opening. This is the main reason for not having a whole
lot to talk about. I for one am not complaining, sure I may only do 3-5 trades
a day, but they are good set-ups, win or lose. There is simply nothing more
that I can do, that is my style, I do not get concerned about ferreting out more
trades when I sense no edge.
Gold stocks, despite feeling a bit toppy and a
strengthening dollar are holding their ground real well. This to me is
indicative of a sector that is clearly being accumulated by “smart money.” I
will wait to see if NEM can pull-back into
the 40-41 level before I add to my core position. In the meantime,
NEM is a great intra-day trader, especially
when the DXC is moving around.
Meanwhile, some of the FX pairs mentioned in this
column over the last few weeks are continuing to trend nicely. Most FX trades
need to be longer-term based, I for one have not found an edge trying to
short-term trade them. In fact, the 60-minute chart is as far down the interval
scale I will go when considering a trade. So, keep an eye on these shorts:
EUR, EUR/CAD,
EUR/JPY, CHF/JPY.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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As always, feel free to send me your comments and questions.