We had a really nice pop higher in the indices, gold, and the dollar. The indices and financial stocks pulled back after the open, but I think this will only be temporary and we will likely see a really nice wave iii sustained move all day higher tomorrow.

The dollar is just about to roll over and this is really bullish for mining stocks short term. I think UUP could pull back to the 26.20 area. It could do one more minuette wave higher tomorrow, but the negative divergence is really mounting and there is not much room left on the upside for the dollar or on the downside to short the Euro. Newmont and EXK held support at their upper trendlines. GDXJ tagged it at the close. I also saw about 900,000 shares of JNUG block traded from 6.33-6.40 and we closed above all of those prints. I am bulllish on the mining stocks.

Here is PAAS closing above two upper down-trendlines and above the t-spot. It tested the 4/8 emas and bounced.

The 20-year treasury also got a lift after initially selling off in the morning. This could be an interim top for TLT and it looks like a sell at the close.

12:49 pm.

I am looking for GDXJ to break and close above the upper trendline. I am bullish GDXJ and JNUG. We tested the 4/8 emas and bounced right up off them.

I also saw some block trade buying on XME: 185,847 at 31.80. I think XME is going to new highs over the next weeks, along with VALE and FCX.

12:10 pm.

VALE, the Brazilian metals and mining company, also looks like a buy here too. I might buy some. I like this stock. I also saw 620,000 shares block traded at 7.97.

10:28 bought a little XME.

10:14. I like XME too. Watching. There was a 278,970 print at 30.88 this morning. Dipped my toes into EXK and PAAS as well.

10:05 am. Dipped my toes into FCX. This is a good healthy pullback with the gap up this morning still open.

8:28 am. I am salivating here. Looking at these charts is like looking at eye candy. lol. Careful or I might get burned. 🙂

7:52 am.

Both of these stocks are backtesting their breakout trendlines and holding nicely so far. With the dollar topping out, I really like both of these mining stocks here too, but I am going to wait for the close before buying. Paytience.

7:47 am.

Here is UUP on the 2-hour chart and the 5-min chart so we can see where we are now.

7:28 am. This morning’s pop higher looks like a very good start to what could be a much larger wave higher to new highs. I like FCX. I am thinking about buying it. I am watching it carefully. I saw some prints earlier. I would like to see more prints on FCX and more prints on the mining stocks and gold/silver before the close today.

6:52. Stopped out remainder FAS +.84. The mining stocks are looking really interesting. I am going to watch. EUO and UUP are topping out, they need to make one more little high and then it is going to be pullback time for the dollar and buy time for the precious metals.

6:41. FCX is looking interesting. I want to see a positive close for the close. I see a print at 13.50 570k.

6:36 am. Sold another 1/2 FAS +1.62, tried NEM long, stopped -.22. I have to exercise more patience on the mining stocks. Going to watch for the close.

6:31a am. closed out remainder TLT. +.73

5:50 am. Scaled out half my positions in FAS +1.00, TLT +.99.

4:59 am. PST. I am reposting my XLF and TLT charts here. XLF could go as high as 24-25 dollars on this ending wave v/3 move before consolidating some more.

I am looking for TLT to make a new low to about $115.

4:39 am. PST. The capital continues to flow out of bonds this start the new year as anticipated last Friday. We can see that TLT is down this morning. I will watch to see if I have to exit my TLT short position or whether I can continue to hold to a new multi-month low. There will be resistance at 118.60 and support at 118.16.

As capital continues to flow out of bonds, it looks like it is going into stocks. This morning the Dow mini futures are up about 148 points and it looks like we will very likely surpass the 20,000 psychological barrier this week, possibly today. This could be an ending wave of a minute v degree as my XLF chart suggests, but certainly not the completion of the bull market. I will probably look to see whether I have to exit my FAS long position today.

The dollar is also having a really nice rally  with the index futures up more than a dollar this morning! This helps to confirm that I probably have the right wave count as posted earlier with EUO and UUP. I think this is an ending-minute-wave-v move.

Considering the dollar futures are up 1.19% this morning as of this writing, gold and silver futures are faring quite well in comparison. /GC and /SI are only down slightly and I think it is probably because this is an ending move and traders are anticipating another bounce in the precious metals. I might look to buy mining stocks for that bounce once the dollar completes its minute wave v quite possibly today or tomorrow.

You can see /gc finding support at the 1148.70 support level this morning.