Are You Seeing What I’m Seeing?

I was going to write about the S&Ps, about the support we’re seeing at 1,250, how it’s going to go higher for a short bit and then trend lower in the channel, etc. but something else has me going “hmm.”  Still, here’s the SPY chart just in case –

Ok, so now for the mystery, although it’s really no mystery at all.  I’m impressed with gold and it’s relative strength, unlike silver where there is still a broken bubble and a look like prices could still break lower.

Gold should be collapsing, right?  Right.  And the action in the gold miners has me thinking that gold’s “crawl” along the 50 DMA is about to move south.

I don’t think it’s the drop of death that silver took, but I do think we could see 1,400 in gold pretty quickly.  Miner’s health and the US dollar strength might support this argument too.  Oh, and QE2 ends in 8 trading days too.

Just something to think about as the week gets kicked off.  Something’s got to move with volume, because it sure isn’t the S&Ps right now.  By the way….. I do own some GDXJ puts and some SLV puts in here.

Have a good day/week and trade the extremes!


About thefront9

Independent trader with a flexible approach to the markets. Position trading, swing trading and day trading using Futures, Equities and Options. This site is intended to help others (and myself) see what I see and to stay true to the discipline of making trades at the extremes. Contrarian and TastyTrade addict! Living in Texas with my family, helping others and maybe playing some golf from time to time makes life busy and great. Add a little music and humor and that just about sums it up. Trade the extremes and manage risk.....always!
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One Response to Are You Seeing What I’m Seeing?

  1. Pingback: Are You Seeing What I’m Seeing? | Front9 Trading, LLC | Bill's Blog

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