Stocks mixed, gold continues higher

q0910.pngStocks ended mixed to lower today, with the small and mid-cap leading the way lower, and with the QQQQ holding steady, all on slightly lower volume. There isn’t much to show on the S&P as the chart looks about the same as that shown last Friday, except momentum is heading a bit lower, and bar range has expanded a bit. A rally in the indexes brought the indexes all well of their lows. I will just include a QQQQ chart today, as that is the only index I am still looking for a potential long trade.
The regression channel is still rounding over the price bars, so trend does look to be changing to down, as it has already done in the other stock indexes. The lower stanard error band has held the closing price for two days. Today the three day pivot (yellow dot) held the high of the day. The bar range did expand from Friday to create an outside day, but the close was in line with the close on Friday, and double stochastic (in bottom sub-graph) did poke into oversold territory. Also, the lower error band sits right about where the pivot high of eleven bars ago is. This seems to be very minor support, but if it holds, which I doubt, and momentum turns back up, a long scalp would be indicated, or a longer term trade if the channel turns back up. But for now holding onto shorts in the S&P is still indicated. Bernanke is supposed to speak on Tuesday so maybe the market will change direction again.
Gold extended the rally by a couple dollars. The high of Friday held, and the close was well of the high of the day. This is no surprise due to the extend of the upthrust, however it was enough to turn my very short term momentum indicator to the downside, and the adaptive CCI is well above the +200 overbought zone. These are certainly not signals to trade from the short side, but long purchases might be a bit risky at this point. It would be safer to wait for a normal retracement. Chasing the gold market can be an expensive activity.

Leave a Reply

Your email address will not be published. Required fields are marked *