I've did very little posting lately mostly because I do not feel comfortable putting out long or short ideas in this market while houdini-bank-profits are going on.
I've only shorted a tad at this point and am holding off before getting a little more aggressive. After further consideration I feel like any pullback from here will be shallow (836?) with another push higher towards 900, perhaps even 935, before we get a deeper pullback to 8'hunert. I'm fairly neutral at the moment. If we gap down big tomorrow then perhaps its on but the chances of a snap-back rally is high. I don't feel like being the first one in the water this time. I'll let someone else test the waters first to see if they are eaten by a shark. Nor am I chasing up here. This week will be the telltale on whether we get the pullback sooner or later. Every technician sees the overbought conditions coupled with negative divergences which is why I'm cautious shorting here because of the squeeze factor. If the market turns down then I'll gladly pile on, but until then I been keeping myself occupied in the futures market and writing some automated trading strategies which I hope to cut loose soon.
Gold continues its march downward. I would expect it to get a bounce not far from 865 up to as high as 925-950. I'm considering silver or getting long the miners near gold 850. GG at 25 looks like a possible entry, but its too early to tell.
Best
