The Dow due for a bounce and Bonds looking to head lower

Also,   be on the lookout for this Wed as its FOMC coming out that afternoon at I believe 2pm est.  The Dow is at a great place to buy on the dip as we expect to see price test highs to push even higher.  Have a great trading week!


-david

Dow makes new high today, ready to go higher!

Hi everyone,    the Dow keeps moving on up regardless of every quack on CNBC or media channel saying different, and the talking heads can't seem to figure it out why this is happening...  Mainly the markets are being driver solely by the Fed and their influx of printing or monetary easing and even our good ol' boy Ben Benerake has admitted this will propel stocks and indices higher.

And we are heading up higher so I would consider looking for dips to buy and position yourself for more longs in the market.

have a great week,

-david

Are we Up or are we Down? The Dow takes a Pause...

The Dow closed up on Friday, but not by much,  kinda puts us in a moment of pause as we wait this week to see are we still going to rally to new highs or are the shorts finally coming in hard to drive the market lower?   I think its anyones guess right now, but I believe this week will see for sure what's the final ruling.

I'm looking for Gold to head lower,  the dollar to continue and head higher as with equities.
Look for some retracement in bonds but the majority of the move I believe is still looking downward.
The Dow looks to hit some resistance opening on Tuesday but if it can break through its off to the races with it moving higher, bonds typically moving lower.

Have a great trading week,  and be careful out there!

-david

Dow to go Higher, Bonds to Drop Lower

Hi everyone,   I know its been awhile since I last updated the blog but wanted to add some thoughts on what I see happening in the market.  We've been on a constant rally with the Dow, and after witnessing Gold sell off about 300 points in 3 days it goes to show you the markets are never dull right?   I hope you were able to catch some of Golds historic move to the downside and that you pocketed some nice cash.. :)

Today I want to highlight that it looks like the Dow is going to continue higher and break its high and continuing moving higher.   But the trade to watch and is something I trade myself is to short the 30 year T-bond as this typical correlated instrument will usually be inverted to whatever the Dow is doing.   So for myself instead of chasing the Dow I believe its a better trade to short the Bonds, with a tight stop at 5 ticks and open target (but no more than 32 ticks as the baby will more than likely reverse outside of 32 ticks)
Watch for a bid up,  and/or sell off some support or a pull back to catch more of the downside move if you like.

Also,   be aware this Friday is Non-farm Payroll and looks to be a pretty volatile day.  So be careful out there trading!  

Have a great week,

-david