Stock Market Update
Stocks gapped lower today with the S&P, NASDAQ and Dow all closing on their lows. If you look at the above 60 min chart of the S&P and NASDAQ you will see that it's quite obvious the stock market has been in a trading range over the past 5 weeks.
Being that I'm short the stock market, it was nice to see many key groups moving lower today. The next support level for the S&P (SPX) comes in around the 1086 area and for the NASDAQ (NDX) I'm looking at the 1760 level.
If the market does test these levels, I may cover a third of my short position and book some profits. I've been sitting in these shorts for weeks and I would like to take some money off the table and lighten my exposure especially ahead of the possible Santa clause rally. We'll see what happens.
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
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3 comments:
Hi Kevin,
Merry Xmas!
Thanks for the tips on gold and dollar. I think there is def. a bubble in gold....just too much sepeculation on something that offers no yield.
George
George,
It can't be a bubble until everybody quits calling it a bubble. When everyone piles into gold because it is a sure thing (dot-com, houses, tulips) then it is a bubble.
The public hasn't even piled in yet. They are still selling there gold.
Great comment. I also sold some short shares today taking small profit. I think the market could go up next 2 weeks and I will try to get into short again at a better price. I recently posted historical trend on DOW trying to prove that December/January period has been the best time of the year. Check it out at investlongandshort. Will visit more often now that I found your site.
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