A cheery Friday to all Slopers the world o’er. Our precious friend palladium shot up to almost $1200 yesterday evening, but since then it has shaved off those gains and moved into am modest loss. I am expanding my position 20% at these levels, because of the reasons I’ve cited repeatedly. The fact /PA is down modestly while gold is getting smacked down nearly $80 is also encouraging.
The big transition for the /RTY this week was the move, once again, above the Fibonacci, changing it from resistance to support. That support was perfectly tested on Wednesday, and here we are again, floating above the Fib. First thing this morning, I re-entered my IWM short.
It’s all about the green line at this point, which isn’t a Fib but what I refer to as the CPI High. As an aside, I would mention the CPE came out this morning twice as hot as expected, but no one seemed to care. In any event, the battle between the bearish setup (above the green) and the bullish setup (below the green) remains quite unresolved.
As for semiconductors, shown by way of the SMH below, I think they’re fully in la-la land, so I’ve shorted SMH as well. I remain lightly committed at 67% cash and zero margin.
Oh, and I’d like to dedicate this song to the 70-year-old pimp Kris Jenner who is sliming around the canals right now with all the other wastes of space. Drop dead!
