This high has a few things happening that have me proceeding with caution. First off the latest COT report has small spec very bullish and the Large spec getting bearish. Big money is short. However price is king and price is rocking to the upside. I think this goes to the 1877 area then pulls back. I am not sure it will be a topping pattern for the /ES. We shall see. The DIA etf that mirrors the Dow is another story. I mentioned a few weeks back that I am getting short signals for the Dow. $DJI watch 16522. I think this holds and we see it head south. I am waiting for this next turn down before I short it. Gold, Silver and the miners are taking off. this could be another sign that we are not going to get much higher. In summary price is king and we trade what we see. Happy trading.
The Bears are dancin’. I felt that if we broke the 1812.50 area that we would trade for a while in the 1774-1812.50 area. Market traded down to 1774 for a bit held there for a few days and today the bottom fell out. I still am thinking this is just a correction. Look for the 35 to hold. If we can not muster a bounce here then we will see 25 area and very likely we see 1705 which happens to be the monthly S2. I still do not have a longer term short signal for the S&P. The Dow is another story I got a short signal on it last week. I am doing well with this market. Started picking up a few shorts 2 weeks ago. All of these positions are risk free trades. I am long GLD with full risk and did place a trade for MSFT long today. Taking a little heat on MSFT but it should be ok. Gold has broken a downtrend line and is seeing volume come in. I also entered a long position on KRED. This is a position trade meaning I like the story. Nothing to do with the chart. I entered it at .75. Hope this helps…Happy Trading!!!!