Tuesday, November 18, 2014

Shits n'Giggles: Short High Yield (SJB) and Gold Trust (GLD)

Giggles: Short High Yield (SJB)
Corporate junk is putting in a pattern which seems poised for a breakout. Having said that, some of my declining triangles haven't worked out like that (please recall natural gas four months ago). I think it will bode ill for the greater market to see SJB get above $27.90 as Treasury yields and corporate junk are beginning to diverge and small caps and the Russell are taking it on this chin in a similar turn of events to early Octobers fall.

Giggles: SPDR Gold Trust (GLD)
I will admit GLD has had an impressive run of late and we seem to have put in a bottom at around $110.00, but our EMA's are far too divergent and the MA(144) is a little too far off still for me to believe that an ascent is possible. No fear - it looks as if a resistance will be put in at the EMA(34) which is currently around $115.00 with a fall back to the baseline at around $110.00. This oscillation around $110 will likely occur once more before a proper indication of whether a move up will happen or not. In my opinion a fall back to $110 is a phenomenal buying opportunity as the punishment of gold has finally run it's course.

Jakob Richardson © 2014