The market continued its surge today, with financials making huge gains, and some amazing moves in gold and bonds.
As you can see, the S&P 500 has now rallied to the 50 Day MA. A spot it has often reversed from in this bear market. Time to look at SH or SDS?
There were two triggers from the Watchlist. Both closed below or near their buy points, but one, CYBS, offered some nice gain before reversing.
The moves this afternoon in gold, the dollar, the euro and in bonds was simply stunning. Congratulations if you were positioned well for these. I mentioned in Sundays post that a big move was setting up in bonds, just wasn’t sure which direction. Today, bonds moved huge to the upside after the Fed announced it would buy treasuries. The move in bonds can be seen in this chart of TLT.
It pulled back to its consolidation area, and didn’t trigger the squeeze, which I mentioned on Sunday, but needless to say, I am liking TLT (disregard my comment last night on liking TBT). I am currently positioned in neither.
With buyers pouring in, the S&P touching it’s 50-Day MA and Options Expiration on Friday, I am not I interested in buying stocks right now. Especially since the recent triggers all pulled back beneath their buy points. I am keeping an eye on commodities here though.
Good luck and good trading!
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