Greetings, yet again, from seven miles in the sky. This morning I’ve been up since the equivalent of 1 a.m. my time, and I managed to sleep a couple of hours on the plane before waking up in anticipation of the opening bell. Considering what happened Friday, we all have even more reason than normal to pay attention what transpires on this first day of a 5-day (thank you, holiday gods!) trading week.
The /ES, as of this writing (moments before the open) is up about half a percent, but it doesn’t look ready to undo all the damage from Friday. I’m actually pleased to see all this green on the screen, because a hard wipeout this morning would almost guarantee a big rally for the rest of the day. Hopefully the bulls can get the “stocks are on sale!” out of their system swiftly this time.
The damage is even more severe with the small caps, as you can plainly see with a quick glance comparing the above and below charts.
Gold looks like it WANTS to break out, but I’ve got a hunch this isn’t going to happen. Remember, I’m a precious metal fan, so I don’t have an axe to grind here, but I don’t think this breakout is going to kick in.
What augurs that opinion for me is the silver chart, which looks like it’s absolutely wheezing at this point. My view is that silver is more representative of the week ahead than the hypothetical gold breakout is.
I took a quick peek at my twelve bearish positions, and eleven them are all pretty calm and boring, which is fine. I do like the look of SMCI, however, which I suggested as a short early last Wednesday (red arrow). So far, it’s melting off quite nicely!
