The most natural thing in the world is for the market to balk at important symbolic numbers. Thus the major indices are balking at the present major step–Dow 20000, and a commensurate number in the S&P (more or less 2300 + or -). The S&P has been even more balky because of its inclusion of several sectors the Dow ignores — health care, etc. We added on a very small position, while recognizing it as a rank speculation. More rational investors will not add on or go all in until the upper trendline is violated.
Perhaps it was the weather. We also scaled in to gold which we often scoff at. But a trendline was broken and there was a gap and a fortune hunter once told us we would make a fortune in gold. So much for that– we justified it as a swing trade and time will tell:
Also we were feeling trader’s regret for not having taken the short trade in gold. Readers are warned that the PnF system is very negative on GLD, looking for a target of 85.
We will address GLD at greater length later this week. Meanwhile there are more important things happening — namely, can Clemson beat Bama? Certainly playing inside an icebox the San Francisco Packers can beat the Giants, and have.