Charts: DGP, PWE, SPX (S&P 500 Index)
Click charts to enlarge
[[dgp]] — Short @ $16.90
Though RSI(3) indicates that gold is short-term oversold, I’ve highlighted 2 recent occasions when it was oversold and kept dropping further.
As of this moment, US$ is moving up and gold is dropping.
My target is still tied to GLD, but I’m guessing it’ll be around 50dma on DGP as well, or $15.
[[PWE]] — Short @ $13.24
50dma is lower today, overall PWE behaving as expected with all the indicators starting to correct.
Stock went down on slightly higher volume today, but not significantly.
SPX — S&P 500 Index
Well… I have Jan $75 puts, as insurance against a dramatic plunge, because I’m still slightly paranoid. I have that TZA which is a 3x Small Cap Bear ETF. And I bought Feb $92 SPY calls (that I sold yesterday, re-bought them cheaper today). So though overall I’m net short the market, I’m slightly hedged. Saw a “signal” indicating that SPY should be at $91.50 at some point tomorrow, we’ll see.
RSI(3) worked off the overbought condition pretty fast.
Volume was slightly lower today.
Closed at support. Should it break, SPX will go to 50dma.
Pivot points for tomorrow:
R1 921.98; S1 896.90; R2 937.25; S2 887.09, DP 912.17
Hi, I’m getting a little paranoid too. IBD mentioned today that the market has a pattern of breaking slightly above resistance then failing. But the market was overbought and seems like it needs to consolidate a lot of the gains off the lows.
Hi HC,
looking at the futures now and I’m scared. It’s been awhile since we had -10 on SPX in premarket.
Obviously, I regret buying the calls, but since they are Feb., I’ll stick with them for now, as I think I may have a better chance to get out. Besides, I’m still net short.
The chart above DOES look like what IBD says. However, note that the previous low was higher, so hopefully we’ll just go to 888, and not 850 or below.
Have a good day.