2:43 am Hong Kong. It looks to me as though the Dow could find support at 20,500, which might be another buying opportunity. Again I am not trading this week, but I think the Dow could be making out a wedge pattern here before continuing to rally into June. Not 100% sure, but if I would watch the 20,500 as a key level of support.

2:20 am Hong Kong. Things have gotten very interesting in the currency and gold markets this week. I had mentioned that the dollar broke down from key support and in previous posts that if it broke down from the wedge it would be very, very bearish. Well, UUP also broke down from the uptrend line from 2014. The UUP could drop down to $24. The thing to watch is the backtest now of that broken trendline. I still have no positions on right now either way in anything. The price patterns have become very interesting to me now in a variety of instruments. Just watching now. I plan to head over to Macau today to see the “gamblers” lol, and mostly “trying” to sleep during U.S. trading hours.

The USD/JPY has met and somewhat exceeded my downside price objective trading down to 110.93. The next level down stands at 109.42.

4:44 am Hong Kong. Hi Everyone, I am in Hong Kong now. It looks like gold, silver, and treasuries continue to correct to the upside. It looks like gold still has room to the upside. I have no positions on. The dollar broke down from key support and the Euro has rallied. I wanted to post a chart of the USD/JPY as a correlated piece of information for everything else.

It appears to me that USD/JPY could correct as far down as 111.58. It has reached the first level of key support. The next level down is 112.54, then 111.71, then 111.58.

9:09 am PST. If gold goes down, treasuries are going down too. Morning gap remains open. Bearish.

9:06 am PST. Ok, I re-shorted. lol. Gold is probably going to flash crash as soon as I step onto the plane.

8:24 am PST. stopped out of my GLD puts. SLV could rally as high as $16.20. Glad I am out. I have to see my daughter off to school – first time I will be away for this long, finish packing, and have to jog before getting onto a plane at 12:30 pm today for 15 hours. Going to take a break from trading this week and next. Gold has permission to tank now. lol. I want to enjoy my trip and not be glued to my phone or computer while visiting Hong Kong and Taipei for the first time. I want to look at the real estate. Take care and I hope you all make a ton of money in the interim!

7:24 am PST. TLT has gapped down this morning and trying to back fill, but it might keep the gap open until the close. I might short TLT if it does.

7:02 am PST. The miners have almost closed this morning’s gap up. That “should” be bearish for gold and silver. The miners lead the metals. I still have my GLD puts on, which are underwater now and am very close to stopping out. Great trading to Stefanie Kammerman @ theStockWhisperer.com, who held an overnight swing on USLV.

6:53 am PST. Exited SPY calls scalp +20%, day trade.

5:32 am PST. Gold is up $6.20 and silver up .33 this morning. Today makes day four of the correction. I see silver has resistance at $16.85 and then $17.21, gold at $1235, $1243, then $1248. I have stopped out partially my short trade this morning. The Dow futures are up 48 points as of this writing.

The Dollar dropped down overnight to test the bottom of the wedge for what I count as the fifth time. If the dollar fails to hold the bottom trendline on the wedge…that is extremely bearish.