Before I head upstairs to read my little girl her bedtime story, I’ll share a chart with you that captures the nuttiness of Tuesday’s trading. On the left is the DIA minute bar chart; and on the right is the AAPL minute bar chart after hours. Opposites yet equal in their insanity. Good night.
Hacked AP twitter account. Claim of White House bombing and injured President. Entire day’s market gain reversed in moments, then springs right back. We are officially on the other side of the looking glass now. This market has become a bad joke.
Excerpted from this week’s edition of Notes From the Rabbit Hole, NFTRH 235:
Is Gold as an Investment Finished?
Before delving deeper into that question, perhaps we should see what the mainstream media thinks. In fairness to the MSM, we note there are plenty of articles on both sides of the debate. Yet there has been some media piling-on since the recent hard breakdown in gold. The aptly named Howard Gold explains:
The Case for Owning Gold Has Collapsed; Yellow metal could be headed much, much lower http://is.gd/h5KW6v.
Gold could be headed not much lower, but much much lower. This was written on April 18, when the value assigned to the monetary relic (AKA its nominal price) resided at $1391 per ounce. So be warned, Mr. Gold advises that gold could go much much lower. Gold bugs take heed; Mr. Gold himself has put the double ‘much’ whammy on you! (more…)
Well, not a great morning so far. After finally getting some downside action last week, we’re doing the usual Everything Goes Up schtick right now. I took my punishment on NFLX last night, but it would have been even worse if I waited. I’ve trimmed the sails quite a bit, being only 52% committed right now. It’s been a punishing start to the day.
Speaking of punishment, I am giving my Chipotle short another go, having shorted it yesterday at 364.04 with a stop at 373. I don’t have huge ambitions about this one, but I think a trip back to the mid-330s is a pretty safe bet.
ES made decent progress yesterday and has established a decent rising support trendline. There was some negative RSI divergence at the high yesterday but after some retracement that high has now been broken with some confidence. The next decent resistance is in the 1570/1 area: