Stocks are Staging for a Breakout of Consolidation
The S&P 822 to 862 area remains in focus. It would appear that the market wants to focus on the coming bank stress tests and the results will probably be a factor on a move out of this area. So this is a Friday and our earlier comments this week still hold.
To me the Gold and dollar markets are acting strangely. Our last trade in this area was to cover short gold positions at 867. These were short positions put on in the 930 area. Today in our aggressive portfolio we are going to see how a short gold position feels again. Gold is currently trading at 909. Hold positions to 5 percent of total market exposure. The double short ETF DZZ will be used.
The EMA ETF Fund Nav was 1079 on the close.
7:24 AM CDT
12:06 PM For some reason I didn’t send this earlier. Wrote it and then left for a meeting without sending. Maybe this is good, gold is 912 now.