Tuesday, January 10, 2012

And there's the breakout.

As I expected yesterday, we broke higher in premarket. So there was no real edge if you opened your screen this morning, only to see indices were up +1%...

We traded sideways most of the day or even sligthly lower (with tech pulling back more than other indices). Another very small candle on the daily charts for the indices and a close under the open. We'll probably see a small pullback before going any higher. Volume is too small to go higher straigth away. And that lack of volume is also the reason why I wouldn't chase longs here. Not without a tight stop and a smaller position than usual.

5m-chart SPY:



Daily charts DIA, SPY, QQQ and IWM:



Metals were up big, outperforming indices. Oil went up, close to the high of last week, but then retreated somewhat. Among all this bullish action, the euro was up only little.

Trades
Gold is looking very bullish here after a 3-day consolidation (see chart below for gold-futures).
I went long GLD (gold-ETF) @158.75 with a stop at 156 for a swingtrade.


One article for this evening:
The Counter-Narrative

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