So far after Friday’s move to the upside we are getting more consolidation but no real pullback. Sentiment is slowly falling but the market is still a bit short-term overbought. Ideally we get a few more days of consolidation with perhaps a small pullback and then I expect another nice move to the upside.
My position in GLD this morning is +1.15% pre market. Also I have a scattering of stocks and will be adding more in preparation for my expectation of a move higher later this week to next week.
Its been a good 2 week period even with mostly consolidation as I have been able to catch some nice breakouts to the upside for big gains. Typically during consolidation you are prone to whipsaw. However this time my stock selection has been spot on. I had better enjoy it while I can:)
One thing helping the markets out is the lack of news. We do not have the Fed in front of the press everyday chanting the interest rate hike mantra. That is a big help. I still do not know what it was that prompted that bout of insanity. I doubt it was a random event, just poorly planned and poorly implemented.
One thing I have always thought is that foreign leaders certainly know how their actions are going to effect the stock market. We have strict insider trading rules here in the U.S. but in other countries they are pretty much free to do what they wish. So for instance before Russia invaded Crimea as an example what is there to prevent the Russians from shorting the stock market or perhaps buying gold in the markets. Just a thought for a Wednesday morning. But you talk about easy no risk money!!!
Back to he markets as I have spent most of my morning handicapping baseball and not the markets. Still have a bit to do in the last 20 min before the open.
Let me mention also NFL starts tomorrow with preseason. If you have not already signed up with our group now would be an excellent time to join. Just select your subscription option on the paypal menu. All have a 3 day free trial built into the subscription.
Good Luck Today
RickJ’s Handicapping Picks