Gold, a $250 down day ………….update at 10:40 AM
would not surprise me sometime in the next 10 days, probably sooner rather than later and my $ 750 downside objective is in play between now and Thanksgiving. The reasons are apparent and have been discussed at length here.
Stocks in terms of the S&P 500 are pushing up to the 1270 resistance area where all the technical believers in a head and shoulders top think the market will stop. For me, I don’t think the market will take out the 1370 high but a run to the 1310 to 1330 area will be enough to create wild times at CNBC.
In the next few days we will try to provide more in-depth analysis. In our five tracking portfolios followed in Marketocracy we are 0.9 to 1.5 leveraged with long stock positions running between 0.2 and 0.6 and short gold 0.5 to 1.0 leveraged. We got our long stock positions back on yesterday in the 1227 area of the S&P and are favoring the XLF ETF.
Update at 10:40 AM We are taking a breather on stocks at the 1270 resistance area. Sold off 80 percent of our long position at 1272 on the S&P. Short gold positions and financial ETF XLF have been retained.
The atmosphere today is less than stable and maybe insane with some talk about the Fed doing a QE3 . If the Fed does anything at its next meeting it will talk about conditions improving and less need for low-low interest rates.