Friday, December 04, 2009

What a mess!

The SPY looks quite fragile up here -- we'll daytrade longs as usual but no swing longs for us until at least SPY 108 near trend-line/50 SMA. This is a complete battle now between the bears and the bulls: the bulls can't seem to re-take SPY 112 area and have failed every attempt at break-out while the bears haven't been able to get any kind of continuation on the downside. The conclusion? Tug of war with a tight range (SPY 110-112) which hopefully will break one way or another soon. The bulls have a lot of work ahead of them if they want to take this market higher into the New Year with gold breaking down, oils and financials sick, and the USD finally rallying.

Hat tip to our friend Dinosaur Trader who bought the USD and shorted Gold into the close yesterday. Sweet!