Today was one of those days that even though the index's were weak negative for most of the day and closed decidedly negative, if you were invested in the right equities you could have had a superb day. being long Gold and silver mining stocks paid off well today as well as being invested in the metals themselves.
lets first take a look at the big picture view of the S&P 500, using a 314 min bar chart dating back until about end of September... its showing somewhat of a bullflag pattern. If this continues to hold we could easily see 1250 in the near future on the breakout. keeping a stop just below the 1170 level
today was a mildly choppy day following the euro weakness overnight, the es found support in the S1 zone at 1174.75 heading right back into the pivot on some strong than expected Chicago PMI and Consumer confidence data. this was a pretty low risk play due to the fact the weakness was purely caused by EURUSD weakness and not anything in the U.S. markets.
the one outlying event of the day was the close, between 3:58 and 4:00 pm 200,000 contracts were sold, not sure if this is a front running event pending some announcement overnight in Europe or merely a poorly executed trade. tomorrow will tell
seems as if the contagion is spreading through Europe like wildfire, talk of Portugal's gov debt being downgraded today. Europe's problems arn't getting better anytime soon, i do however think it might have a deadcat bounce in the next day or two, purely due to the fact its crashing the bollinger band on the daily and getting a little oversold. i wont be buying this until a clear reversal is formed. the Euro should find support in the 1.28 to 1.27 area.
Gold's strength kept up today in spite of a stronger USDX and general market weakness. the precious metal's all had large gains today. Reports of a Chinese fund of funds for gold being created, which would allow the Chinese better access to investing in Gold helped the buying today. Gold looks to tag the R3 level of around $1398 and should soon look for a close at all time highs. it might see some overnight weakness but any weakness should be bought