If you have read my daily rec’s lately, you can see that I am a big fan of selling new historical highs. These give good trading opportunities. One dollar break on a one lot in gold is 100 bucks. 20 dollar break is a $2,000.00 opportunity on a ONE lot.
This is shaping up to be a key reversal day, in the metals, as the metals make new highs on bullish news from Washington, everyone gets long too late on the news, and the market punishes them for their decision to get long at the top.
That is all I have to say about that.
One final note, as of this writing, Cash Dow has printed a high at 11,450. One tick from the Nov 11 high at 11,451. 11,469 is my target, but I am not going to squeal about 18 or 19 points. This currently is shaping up to be a double top. I will be very interested to see 1) if we can get that 11,470 level, and 2) how we settle.
For the broader S&P 500, today’s high at 1235 is the highest tick since September of 2008. Trading to a new high and then settling lower would be a major sell signal for the stock indexes. Think of buying some 1211 puts and some 1200 puts today.
Good Trading