Pulling Back

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Our positions in the Miners are pulling back, but it is a slow pull back so far. This pullback  was expected. We'll discuss what to expect later in the report, but lets start with the pull back that came in the equity markets first.

SPX - It started with a shooting star and the stochastics indicate that we could see more downside.  In fact, I have mentioned that I expect a test of the 'high volume candle lows' sooner or later.

SPX 9-21  

The TRANNIES looked pretty strong re-gaining that 50sma, but they've done that before and a rising wedge is bearish. Notice the shooting star candles at past tops?

$TRAN 9-23  

OIL is playing out as expected too...

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Lets Check This Puppy Out

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Lately things are playing out as expected, but it's always good to check this puppy out and see what is happening along the way. 

I didn't have a Friday report post Fed,  because I had 2 reports on Thursday.  Lets review charts and see how things played out.

My NASDAQ chart from Sept 16 -  Many were thinking that the markets were ready to rally to new highs after the Fed decision.  I saw a rising wedge and a lot of resistance.

NASDAQ 9-16

NASDAQ Sept 17  ( Fed day)  Rejection at resistance.  This was saying to short the markets.

NASDAQ 9-17

NASDAQ  - Friday Sept 18 , The day after the Fed Decision. This is still within that wedge, but that was a high volume drop and there is a lot more room to drop stochastic-wise.

NASDAQ 9-18

This was the SPX on Thursday Sept 17.  Price was rejected

SPX 9-17 Read More

Is Your Basket Empty?

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As mentioned in last nights report, we saw an explosive move in Commodities yesterday one day before the Fed Decision. That caught a lot of people who were not in front of their screens flatfooted. Last nights report also pointed out that it looks as though what we have been expecting to occur during the Fed Speech is beginning to play out.  Lets go shopping and see if we can find some low risk entries developing in OIL and Precious Metals.

Lets re-visit WG.  Rather low priced, I recommended this beaten down Energy stock here at $0.80 and $1.00 in early Sept.

WG

It Popped and ran to $1.80 rapidly and now has formed a bull flag type pattern, landing on the 10sma.  You could buy this with a stop under the 10sma as a low risk entry. 

WG 9-16

Lets keep shopping...

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