I wanted to update a few ideas I’ve wrote about over the past few weeks. I started to get really bullish on bonds about a month ago and then it gapped up and never really provided a good risk/reward opportunity to enter the trade. Well I believe it’s going to give us another chance to get involved with that trade on Mon/Tues if it closes below it’s 50dma. It’s reality it’s close enough and with a stop on a close below this key moving average you really aren’t risking too much. Ideally we’ll see a gap down at the open, with an afternoon recovery. Watch for that trade.
The other update is regarding the metals and how I think they’re due for a correction. Here are the updated charts I provided a few weeks ago and they seem to be bumping up against key resistance levels that I had drawn. Notice the negative divergence on both silver and gold as well in the RSI. Let me clarify that this is not an opportunity to short, but a chance to lighten if you are already long.
