Hello Everyone,
As far as the reversion-to-the-mean systems, as you know they all closed out yesterday, however I manually kept some of those positions open as I thought we could get better gains. Today I elected to take off the 3rd entries from the ES bear Long and Strap for nice profits. We still have open the 1st and 2nd entries on SPY and ES.
Quick Comments
The market followed through on Wednesday's gains as expected with gains of 0.6% to 0.8%. The majority of market sectors closed positive as well. The SPX managed to close above its 9 day EMA, while the tech heavy Nasdaq still closed below its 9 day EMA. Biotech, XBI/LABU, was a bright spot today and closed up very strongly, I posted a chart of this early during the day - watching for potential follow through for this sector.
For the SPX approximate 4020 is a big area, it's been important support and resistance, if price can push through that area, there's an air pocket up to 4050.
A couple ways to label this move up: one would be as an ABC, with this move up as wave A, then we'd get a wave B pullback higher low, then a final C move up. Another move bearish way to label it would have this move as C and once complete it's done.
20 year Bond sold off, while long term rates were up.
Out of the commodities, the uranium sector was once again very strong and the stocks I added to Wednesday's newsletter had very nice gains.
Precious Metals; gold was down today, however the stocks were up, especially the ideas from last night: BTG, AG, GOLD, IAG.
Tomorrow is Friday, we'll see what transpires
Matt
