Post Fed Rainbow -Where’s That Pot Of Gold?
I was actually on the beach today and a storm started to roll in. We got a beautiful Post Fed Rainbow, but I’m still looking for that Pot Of Gold. Let’s do a Post FOMC Market review…
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SPY INTRADAY FED REACTION – We have discussed that the Knee Jerk immediate reaction after the Fed is often a false move. Notice the reaction in the SPY at 2 p.m., as it ran higher, and then the directional change that followed.
SPX DAILY – The MACD confirms that the recent high was weaker, and we are due for a DCL. Watch the 50sma for a break down or support.
QQQ – The NASDAQ was lagging and did not run to new highs. I thought that it might take a shot at it, but the post fed reaction here was also ‘giving up early day gains‘. The 50sma has been a low risk buy, but I would tighten stops right to the 50sma if one is using that as a stop.
WTIC – Oil dipped down, but nothing serious. This is now possibly going to be a r.t. daily cycle, it peaked on day 27, this was day 28. To make this a L.T. Daily, it would need to be over 54 days long ( possible, but we’ll take it step by step, and see how things play out BUT- the Energy stocks look to have turned bullish too).
USD – The USD popped after the FOMC Decision, but it didn’t show on stockcharts. It is oversold, and I really need to keep an eye on this, we do not want a big rally in the USD, that may not bode well for Miners. The USD is due for a drop into an ICL, so a bounce should not last long. How will that affect Gold? I’ll discuss that…
GLD – This is not damaged, but hey, It didn’t rally up to new highs like we would have liked to have seen. It is forming a triangle, and you should know by know that when I see triangles form, I dismiss Cycles more than other cycle guys and reply on Technical Analysis. A USD bounce shouldn’t hurt Gold if it is inside a Triangle. A break down would be a different story.
GOLD – SO this isn’t exactly UGLY but it isn’t exactly pretty to me, we are crawling along the 50sma, and that is normal. I’m sorry to say this, but we really need to see what happens Thursday & Friday.
SILVER – This is not exactly ugly either. We’ll see what Thursday & Friday brings
GDX – This MIGHT BE forming an inverse H&S, but I do not like to see a heavy volume drop anytime I am bullish , so…We’ll see what Thursday & Friday brings . IF the lows are taken out ( The Sept lows representing the head) , it would be considered bearish. Your choice: you can sell & watch it, or risk it and stay in and watch it. I am still holding JNUG, but sold 1/2, I was a bit heavy.
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SIDE NOTE: SOME MINING STOCKS REMAINED UNPHASED
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GSV – I also own this one & recommended it a while back. It reversed off of the 10sma, and closed up 3 cents after I captured this pic.
DRD – Followed through and did not give up the gains.
SO basically, we need more time. We did not get the preferred blast off higher, to make new highs in Gold, but we didn’t really crash down either. Let’s see what Thursday or Friday brings our way. These charts and set ups are not ugly, but they are also not as bullish as we’d hoped for. Time will tell.
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I will post a couple of ideas at the end of the report, enjoy your Thursday trading ( Hopefully).
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~ALEX
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CLRB ( From SOG) – I like long bases with a gap 100% higher, so SOG posted his own version of this stock dropping and I looked at it this way and took a position. If this just fills the gap, it is almost 100% from here. Thx SOG 🙂
GBLX – I have mentioned this one and it is still gaining follow through. I do not have a definite target, it can just run higher.
LBUY – I like this set up as another MJ stock leaving it’s base.
MYMMF – 10:05 a.m. – This looked ready to go, so I mentioned it in the comments section and entered position
MYMMF – 10:30 a.m. – I was looking for a break of the 10sma or downtrend, and this would be close enough, but to be safe, it may be best to wait until the close.
MYMMF – The close – I think that this is a buy, it is oversold, breaking higher and let me also oint something out on the bigger picture
MYMMF – I am seeing higher lows now, and that is usually the start of a base, the right side of the base.
