The airlines are rallying/setting up while crude oil got sold hard last week.
However, to update a recent theme, the natural gas ETF has consolidated its recent high buy volume breakout pretty well.
It is still a long idea headed into this week, looking to play UGAZ for leverage. I want to see natty re-take $21.70.
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A great educational and entertaining documentary on the great American West gold rush from the History Channel for your Saturday morning viewing pleasure.
On January 24, 1848, James Marshall found gold near the fork of the American and Sacramento Rivers, and unleashed a massive migration from around the world to what had been a forgotten backwater. With head-spinning speed, these gold-seekers created one of the most extraordinary societies in history — hard-driving, overwhelmingly male, often brutal.
The Gold Rush was a remarkably international event; in short order, gold-seekers from Oregon and the Sandwich Islands (Hawaii), Mexico, Chile, England, France, Australia, Ireland, and China were soon knee-deep in water in the diggings. Each found themselves playing the Great California Lottery, in which luck not hard work or honesty, seemed the key to success.
http://www.youtube.com/watch?v=xbbxzYB4gx4
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Holiday trading more or less wraps up today, as we should see more conviction in the tape next week. In the meantime, I am noting the strength in some commodities lie coffee, natural gas, and other parts of the market which lagged in 2013 versus the prior leaders off to a slow start, such as COST PCLN SBUX, etc..
As I noted, though, the true test should come in the next week or two, as we see market players of size begin to place their bets for this year. In light of that, being quick on your feet and able to move with the market is going to be key.
Indeed, we strive to do just that, stay disciplined, inside our 12631 Trading Service, which @RaginCajun and I direct. I can assure you that a membership to 12631 is well worth its price over the long run.
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Have a great weekend!
Comments »12631 member, poker player, and all-around student of speculation @chivotrader notes the INTX weekly chart.
Here is what he had to say in our Pelican Room chat just now:
chivo
@chess what do you make of $INTX on the weekly, or longer term perspective? Big turnaround story, paying 9% yield while investors wait. Osmium capital out of SF just picked up a huge stake. $LOCK competitor, changing around marketing strategy after fin regs destroyed their previous business model.03:01:49pm EST on Jan 3, 2014
I am not really sure how, well, incestuous the relationship is between stocks like DNKN SBUX and the coffee commodity. I recognize they have other input costs, and likely have long-term contracts locked in. However, you know as well as I do that the market often trades out of sympathy.
In other words, if coffee really is going to rally this year, note the vulnerability in both daily charts after steep uptrends. I would argue they are both short ideas on weakness.
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Encouraging action in the coffee market, again, today. I am looking for a strong rally in 2014 here.
The JO ETN has the making of a New Year’s Eve bear trap with the apparent rejection of falling back below $22. Also note buy volume is running strong today.
Cracking and hold $23 is the next hurdle.
Back in a but with another related idea.
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