First let me wish you all a very Happy Memorial Day and hats off to our vets(my dad) , and all folks in the armed services who sacrifice themselves to make all world a safer one. ;-) Thank you.
About the markets ....I have a video up of the SPX and it shows there are two possible scenarios that I expect this week. Either way I am expecting a short term bottom for the bearish case and expect some retracement of our move downward in May.
I either expect Tuesday we gap down and then recover to work off some short term indicators, then possibly a run to 1140/1150 area in finish the right shoulder on the inverse head and shoulder. That is where the 200 day moving average is and allot of resistance. After that I expect some lower lows 988 is a target I have in mind;
Or we gap up Tuesday, possibly Wednesday work off some oversold indicators, fail around 1120 or so, the on to lower lows. Same target Io 988 could go further but I don;t like going out too far, too many variables so I will let the charts tell me :-)
On the EUR/USD we had some short covering to work off some oversold conditions last week, I have a longer term target of 118 and lower by end of year. On Friday Fitz downgraded Spain and that's why the market sold off initially, then rallied back then right back down end of day and in the chat room we followed that same ride. Wow to make $$$ both ways, how fun is that. VIX high ( sell options) VIX low (buy opitions) always keep that in mind
Now Gold you have heard many different points of view on Gold, for the shorter term ( next 6 months) I am very bullish on Gold. I use the EFT Gld and am long that now via options. I give out just which ones in traders lounge. Sometimes it's wise to sell spreads, sometimes buy them, sometimes straight options. You really have to know your greeks and that's what I know best
So good luck this week and make lots of $$$$$$$$$$$$$$$
