I am preparing to leave on a five-day journey, so I’ll go ahead and deploy this for the first day of the year. I have reached out to a few of the most prolific writers that occasionally contribute to Slope, beseeching them to add content in my absence. I’ll do my best to get their stuff posted in a relatively timely manner before things return to “normal” for me on Monday, January 6th. (more…)
Penn Virginia, shown below, is one of my open positions on the short side. The pattern has a fascinating “mirror” quality to it on opposite sides of the line I’ve drawn. I’ve tightened my stop to 9.68, and I think a couple of more dollars in downside (which is nearly 20%) is in the cards.
I came into the day short GLD in a big way, and I covered promptly at the open. I have re-shorted a smaller position, although given gold’s strength, I’m not sure if it’ll get stopped out or not. In any event, the strength of gold miners is especially impressive. I wouldn’t be surprised to see a move take place similar to the one I’ve outlined below (with the final plunge taking place based on my ultimate gold target of $1,100/ounce.
Nothing much changed yesterday and I’m still expecting at least a test of the current highs before the retracement that I am expecting to start soon. The consolidation over the last two trading days has formed a clear bull flag, so a new high could well run into the mid-1850s. SPX 60min: (more…)