After basically hovering near the down trendline for several days, the S&P 500 finally broke out.
Check how the down trendline acted as a huge resistance and also corresponded to the 50% FIB level. Yesterday, we had an inverted hammer (bears would call ) or shooting star(as bulls would call). Today's action negated yesterday's candle and is setting the tone for higher prices.
-We broke thru a big downtrendline from last Oct.
- Got above the 50% Fibonacci level.
- Today's candle travelled in the tail of yesterday's candle
I am playing this market long using the SSO(ultra-long S&P500). Picked in the morning around 12.
Also, I believe Oil is a bit tired here and would start resting. I sold most of my commodity stock holdings. Was playing long the commodities since March/April. Some of the stocks I played were:
-Steel- X, AKS
-Solars- SOL, FSLR
-Oil- BZP
-Metals- MEA
-Agriculture- AGU, MOS, FEED
If you pull up the charts of these stocks, you would see they had some very massive runs. I am just happy to be a part of it.
Still holding my GLD long which I picked on May 2 near 84.5 (corresponding to about 840s). I would like to see if GLD has the power to BO above the downtrendline.
No comments:
Post a Comment