Gold!

a quick heads up on gold: note gold is reversing lower right here.  the daily chart below shows it ran into resistance near the 38.2% retracement.  a re-test of the 200 sma is not out of the question.  it's not a trade here for us now but it is worth watching.

aweful risk/reward the tape today

absolutely useless this tape here again today folks.  it's all computer driven as people wait for earnigns season to kick ito high gear. but mostly people are just scared of potential news…good or bad…to appear on the wires out of europe any second. best place to be here for b2 and b3 is on the […]

Morning Thoughts Oct 18

After another boring yet one-directional trading day yesterday the fireworks went off right post the closing.  CROX guided down and is due to open somewhere between 30% and 35% lower this morning. The bank shank continued with Citigroup and Wells Fargo trading down on the day after their numbers yesterday.  BAC this morning after their […]

the financials in perspective

we have pointed out the underperformance of the financials for a long time and the below chart shows it's gotten to a wide point where once the financials get going again they should outperform the broader market:

Game Plan Update

we remain of the opinion that the 50 sma (yellow line) on the S&P 500 is a good support target before potentially rallying up to the 1270 area or so.  in the immediate term we are extended here so a rally straight up to 1270ish from these levels is more difficult to imagine but a […]

trading range update

while we think the lows for the year may have been seen at 1075 on the SPX, the highs 1370 may also have been the highs for the year.  that now gives us a little perspective.  it's a very wide spread between the highs and lows to be sure, but one that mentally will be […]

lack of conviction, earnings parade ahead

after making our morning rounds with the brokers today the theme was clear: low volume and low conviction in the institutional community from last week is carrying over into at least today. with the bulk of earnings season results to hit the tape as of this afternoon post close folks don't want to learn out […]

the VIX…

the VIX last friday broke below the 30 mark and now is re-testing that level from underneith.  30 obviously was a key level to watch for support and its failure speaks to an increased chance of higher prices in the SPX over coming days. the 23 level on teh SPX is what we are looking […]

Morning Thoughts Monday October 17

After taking a little breather last Thursday, stocks again rallied on Friday and in the case of the S&P 500 closed the week at the highest levels in 2.5 months.  Last week’s 6% rally of this index has brought it right back to the very top of its 2.5 month trading range.  If we measure […]

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