Interesting action this week in the stock market. We had a ‘nice’ pullback as you know most of the week, but the indices held up at the 50 day moving average which was expected. Friday was a strong day for the bulls, as the day progressively gained all day … Just a nice rise in prices all day.
I went about 25% long on friday before the market open, as I saw some strength at the end of the day thursday. By the end of the day, I was up roughly 2%, but that can easily be wiped out next week, so I’m certainly not calling it a successful trade as of yet. Regardless it was nice to see my analysis showing the weakness from the week was fading and underlying strength was coming in. With that said, this particular bet is most likely a short term one … Possibly as little as 3 days especially if the marks starts breaking down again.
I’m still long on gdx (gold miner’s etf), which I purchased about 3 weeks ago to hedge the general market’s overbought status. Up about 13% on that at the moment and holding it for now until I see a signal change.
In my opinion, we are at a stalemate right now, with the bears having a slight edge. The coming week will be interesting to watch, to see which side asserts control. I am guessing that whichever side ‘wins’, we should see a strong move in the coming month.
I’m comfortable having over 50% on the sidelines (in cash) waiting to see which side will actually take over.
If you have any questions that I can answer, I am happy to! There is no such thing as a dumb question!
Hope your weekend is great!!