Stock Market: Flattened Out

The Stock market is at do or die support.

With the S&P 500 right at do-or-die support per this chart (absolutely critical, but not particularly strong support), I have done more flattening out after yesterday’s post noting a short cover of GS and a sale of TLT, each very profitable positions. I just don’t think it’s a market to be caught gazing at your successes in, unless you want to get your eyeballs ripped out.

So shorts on the Pigs (KBE) and the Emerging Markets (via EEV) were also covered today, leaving two moderate and un-leveraged short positions open.

As for the gold sector, I have gotten too many emails from people getting nervous about whether or not to pile in. ‘No, please have patience on taking new positions, the sector is over bought’ was the gist of my replies. We covered the sector extensively in an NFTRH update last night.I took some profits there and hedged the rest.

Cash is my favorite thing right at the moment, after noting in NFTRH 381 that I considered my own cash position to be too low. Now I am more comfy.

We also covered the stock market and a bit more on gold in an update today. We talked about remaining calm, patient and realizing that 2016 is going to be a year filled with opportunity both long and short across multiple markets. There will also be opportunities to preserve gains along the way, and that is what this week is shaping up to be.

As for the chart above, that is one ugly mess and it must not make and hold a lower low to January; and that is exactly the point.