Gold And Silver Remain Weak, Bear Flag Building For SPY
Warren Bevan | Jul 07, 2015 02:41AM ET
“Surviving is important. Thriving is elegant.” Maya Angelou
Well, it ended up being a perfect week to take off last week and it looks like there will be many more quiet days ahead this summer which is great.
Markets are choppy and fast moving with gaps prevalent, meaning it’s hard to hold much overnight.
I’ve advocated a high or all cash position for the past couple weeks now and I don’t think that view will change right away, even with earnings season starting.
It is always best to wait for super setups, which are likely by the fall, and then deploy your cash rather than getting chopped up in this type of market and then not have all your cash once things get good again.
Gold and silver remain weak with the dominant trend lower no matter what anyone else tells you.
ARCA:SPY fell under the 209 area and now has a bear flag building.
Volume was very strong today off the lows and then we saw the 207.50 gap filled before we faded the rest of the day.
There are lots of day-trading chances in this type of market but holding overnight doesn’t seem to be the best of ideas for now.
If we can see a move above the 21 and 50 day averages at the 208.80 area then that should cancel this bear flag if it can hold on a closing basis.
Otherwise, it looks like we may be ready to test the 200 day average near 204 in the next week or so.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.