Wednesday 19 December 2012

Things That Make You Go " Hmmm".

One of those things that make you go  "Hmmm" could be my quick post of last night where I wrote that : We may see some pull back starting tomorrow afternoon
The other  "Hmmm" factors could be:

  • Short trade in silver is doing well if you have taken it. If not, don't worry, may other opportunities are coming up.
  • Now that you are seeing the price action of Crude, may be you will appreciate why I closed the short crude trade last week.
  • Wheat is still in range of $ 800- $820 and is a candidate for a long trade with this consolidation.
So may be you can say "Hmmm", the system is working and is in fact getting better.

Jokes aside, I do hope that the correction continues for a while more. I would love to see a lower low in indices and that would make me more comfortable going forward.

The reason that we have for the 11 points correction in SPX is the same that was given on the way up. i.e. fear of the cliff. But if I am allowed to put in my 2 cents, I would say, cycles did not bottom yet although they are close to. The 1st ideal target would be around 1415-1420 in SPX and a close below that should take it closer to 1400. But again, time is running out. Therefore, at this point of time, I do not have any price target, only time target. Don't bother about the end of the world stories. 

You may want to watch this clip from Bloomberg

I think the circus will continue for a while.

Gold is now around $ 1670 and here my price target is around $ 1650, not a huge drop but enough to shake weak hands out. For 2013, it is going to be a huge winner. 

Let us see how far the correction goes and whether it goes any further at all. Again, no need to front run or take any positions. Time for actions is coming soon and we remain alert and keep the powder dry.

Thanks for sharing my thoughts. Hope you remember the Amazon link if you need it for your holiday shopping.


  1. If GLD would fill that open gap at 157.40 then SLV could fill the gap at 28...That would require some heavy selling pressure but would be a great entry...If market goes lower into Fri option expiration will probably be too risky to hold short...Might want to cover shorts and buy some SPY or QQQ Jan calls Friday the way things are looking right now.

  2. wholly molly , look at the futures thursday pm
    how do you play this??

    1. You can not play this type of moves. That is why we are on the sideline waiting for cycle to bottom.