I had pointed out Dreamworks recently as a good short-sale candidate. Today is paid off, tumbling a double-digit percentage drop. I suppose this is due to their movie, How To Train Your Dragon 2, having a disappointing opening weekend. I wasn’t banking on that, however. It was about the Fibs.
Rather an interesting relationship between the agricultural ETF, symbol DBA, and its Fibonacci arcs:
I haven’t been trading gold or miners recently. Precious metals certainly seem to have made some kind of bottom; whether it is “the” bottom remains to be seen, but getting beneath the levels set at the end of 2013 would take quite a strong punch.
Today I drew the Fibonacci retracements spanning from GLD’s high (September 6, 2011) to its recent low (December 31, 2013). What’s fascinating is that even those these anchor points are ex post facto, the price of GLD seems to have an awful lot of respect for these retracement levels as support and resistance. (more…)