12:00pm (EST)
The bulls are trying to turn the week around following Monday’s pullback and have recouped their losses if current levels hold. Of course, we are only halfway through the week and it remains to seen if the bears hold resistance or if the bulls can keep the momentum.
There have been a number of Fed heads speaking this week, some have been “dovish” and some “hawkish” in their comments on the Bernanke aftermath from last week. We won’t bore you with the details today as there are a half-dozen more zombies that will be speaking over the next few days and all of them have their own opinion.
One story we want to focus on today is the continued breakdown in Gold and Silver. We mentioned over the weekend our chart work was showing a possible test to $1,100-$1,050 for Gold and today’s pounding is helping those targets come into play. The yellow metal is down $44 to $1,230 an ounce. Meanwhile, Silver is below $19 to $18.61, down $0.91, and we have said expect a test to $17.50. We will talk more about Gold, Silver, and Copper in this weekend’s Weekly Wrap but keep hoarding cash because at some point, the metals will be a buy.
The current push is fading as we head into the second half trading but with the current volatility, the week is still up for grabs.
We are in the process of building out our next “batch” of trades as we have established a few near-term trades for July and one for August. There is another trade we are recommending with August options on a stock we have followed for years and was a recent short position in our Weekly Wrap. Shares broke below $20 last week and we have said this stock should trade in the low teens by yearend as the student loan debt continues to rise with more defaults likely.
As we head to press, the Dow is up 82 point to 14,843 while the S&P 500 is higher by 9 points to 1,597. The Nasdaq is advancing a double-deuce to 3,370.
Subscribers, check the Members Area for the New Trade and stay close to your email inbox as we could have a Weekly Wrap Trade Alert later this afternoon.
