The Wonderful Aroma Of Speculation
I think it is safe to say that today will be a short
day for just about everyone on Wall Street, given that the long
Memorial Day weekend has arrived. If there were ever a valid reason to pack it
in after the first hour-and-a-half, it would be today. Not that that is such a
bad thing though. The way the mornings have been trading, you’ll have plenty of
opportunities to snare some excellent trades, and then sit tight with your
winnings.
Yesterday was pretty good in the afternoon, if you were patient. Until the
market broke above 1089, it was basically a chop session. However, the move
above 1089 set off quite a good shot to the upside. Going into the long weekend,
these types of moves are not uncommon.
The gold stocks continued to perform well intraday. The five-minute chart of Gold
Fields
(
GFI |
Quote |
Chart |
News |
PowerRating) below had good intraday range and offered two to
three very nice intraday setups (non-HVT
trades). The fact that GFI rallied back
sharply after gapping lower indicates to me that there is something to this
multi-month rally in gold stocks. Remember when every tech stock known to
mankind was bought on every dip? Don’t laugh. There will always be an area of
the market that exhibits the wonderful aroma of speculation. Recall that back in
the 1980s, gold ran up to $800 an ounce, and the fact that CNBC now actually has
a gold quote in their ticker, leads me to believe that higher prices may be in
our future.
Again, until the trading range is broken, the technical levels will not vary
much on a day-to-day basis, so don’t be surprised to see a lot of repeats.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1124-25 (confluence & key resistance) |
1333 (big confluence) |
| 1110-11 | 1315 |
| 1102 (key resistance) | 1287-90 |
| 1096-98 | 1255-58 |
| 1088-89 | 1224 |
| 1069-70 | 1203 |
| 1045 | 1177 |
Have a safe and great Memorial Day weekend.
As always, feel free to send me your comments and
questions. See you in TradersWire.