Closing Thoughts

1:01 pm PST. The emerging markets, EEM, and U.S. core indices corrected today, but I think it will probably be short lived. All eyes will be on the state of the union address tonight. I spotted 950,000 shares of BAC block traded at 24.61. We closed above and the pattern looks bullish for tomorrow. I am expecting a pop higher in the financials.


Gold sold off into the close while the U.S. dollar caught a bid. I think gold could test 1241 tomorrow, which is the 200 weekly sma.




9:25 am PST. I am starting to see more dark pool prints coming in across the board on SPY, IWM, QQQ. IWM more than a million at 140.01, SPY  at 237.12 , and QQQ at 130.10. I think we are starting wave (iv) correction now which is going to be a sharp drop down for wave (a), probably to 232, and then 229. It is probably going to be a one-to-two month correction in a-b-c-d-e wedge fashion. Wave (a) could be the lowest wave. Happy trading!




7:39 am PST. JDST 308,000 block traded at 16.40. It is a battle between the market makers.

7:07 am PST. A large block trade on GDX about 2.3 million shares at 22.98. We are bouncing now. This might have been the capitulation wave 2 low at the 50 sma. Just thinking out loud.

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5:11 am PST. Goldman Sachs is selling off this morning.




IWM overlaid with GS in the black line.

5:01 am PST. Good morning. I am watching how the VIX has been inching higher as /YM consolidates. TLT also catching a bid this morning.



6:34 pm PST. Don’t get too excited about this but I just wanted to post it because I thought it was interesting how GDX stopped right at the 50 sma on the day chart, and the 21 sma on the weekly chart.



Closing Thoughts

1:02 pm PST. Very dramatic sell-off in the miners. I know of only two traders who actually caught the bulk of the move down from last Friday. Kudos to you Cameron and Ron. Mortdiggiddy on Great trading.


Gold tagged the 200 sma-day almost exactly.


This is going to be interesting with the coordination between the U.S. core indices, treasuries, gold and a possible interest rate hike in March. Typically gold and treasuries are the risk off trade.


SPY with BAC overlayed in the black line.


The Wave (2) correction took about two months to happen. While the wave (ii) correction took about one month to complete. This means that wave (4) will likely take between one to two months to complete in what I expect will be a wedge a-b-c-d-e formation.

Rate Hike

11:38 am PST. It looks like another rate hike is coming soon. The market makers are selling government bonds and the dollar is getting a lift now, with gold and silver and mining stocks selling off.