______________________
Just as the market resisted the morning breakdown, it also faded the idea of another sustained move higher today. Thus, we are essentially reverting back to the flatline today. For daytraders, unless you have a specific game plan it is usually best not to trade much on a day like today. The daily candle on the S&P 500 is shaping up to be a doji, which simply means a day of indecision. The trading range today is also much tighter than what we have become accustomed to over the past few weeks, which means traders seeks big action in either direction are probably going to be disappointed for the remainder of the session.
As I noted earlier, the utilities are outperforming, which could mean that investors are seeking yield in other places besides government bonds. Finally, keep the gold miners on watch as they continue to outperform just about all other assets today.
I was playing around with the math and if you go back over the consolidation in $HUI at say Dec. 7 2010 to Sept 1, 2011 when it finally breaks out and compare it to GLD over the same time frame that’s roughly 25% gain for GLD. As such, if $HUI were to make a 25% move from 600 that would put it at 750. Something to ponder.
Brings a smile to JakeGint’s face.
And mine.