So, the bears almost had the bulls down and out on Friday dear readers, until the last few minutes of the trading session when the bulls made a fantastic comeback, and thus lived to fight another day. Will this be the start of a glorious comeback by the bulls or will the bears be able to keep the momentum? Only time will tell dear readers and hopefully, we will see things get resolved one way or the other in the coming week, and that's what makes this week so important in my point of view. But here's what I think. The bulls will find it hard and the bears certainly have got the upper hand. I have marked the immediate support and resistance levels in the S&P chart below. I have a hard time seeing the bulls make a break of MA(200) unless we get some significant good news from Europe. It was news which got us down, so it makes sense to me that only good news can get us back up again. And since news is so important and what's mainly driving these markets, I still think remaining chiefly in cash is the best play here. Let things come to you....why try hard to make things happen?
Another chart worth keeping an eye on next week is Gold. It has pulled back in the last week. Ideally, I would have liked to see the volume to be tad lower on the pullback but keep an eye on the 114 level. If the move is still intact, I expect gold to bounce from here, so this would make for a nice entry point with stop loss below MA(50) level. Usually, I buy gold miners when I wanna play gold, but I think this time I will just go with GLD. The volatility in the junior miners these days is a tad too much for my taste, especially considering the fact that I don't have time to see the markets all the time.
Take care and good luck!
No comments:
Post a Comment