Stocks...
DAX…9860-10,050 is an important resistance zone. Bears will try to sell into this level
looking for a market correction. I doubt the bears get much.
For Bulls, they have to be patient. The market has to work through this area, and it’s a big area, for another 10% upside in German Equities.
DAX/BUND…is trading right on it’s 200 DMA (Resistance) and the closing upside pivot.
Deutsche Bank…has some initial resistance @ 32-32.40 on it’s way to 33.
Closes above 33 are needed for a much bigger rally.
DIG…needs to hold 65.75 on a closing basis to remain firm.
Bonds …
30 Yr. Futures… 142.10 is weekly resistance and the closing upside pivot.
I’m sure the HFT boys really want to run the Bonds stops when nobody is around.
All the resting orders are gong to be above that level.
FX…
USD/JPY…116.80 is Yen resistance / Dollar support (app 85.61 Futures)
This will also act as closing upside pivot for Yen.
Commodities…
OIL… 75.60 is support and the closing downside pivot.
Brent…needs to hold over 80.20 to rally. 77.83 is support and the closing downside pivot.
Silver…needs price action and a close over 16.45 to break out to the upside.
Above 16.45, look for an initial test of 16.86 at the 50 DMA.
General Comments or Valuable Insight
GDX...A lot of analysts seem tho think the metals have bottomed.
Technically they look good and are holding for now.
However, after a 70 dollar rally in Gold, I’m not willing to chase the metals. I bought GDX calls since my downside is limited to $1,600 or 1.5% of a 100k account.
If the metals follow through these will explode. If not, the downside is limited.
It should be a low volume week with most families in the U.S. heading out of town tomorrow.
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Current Positions….
Long Ford (F) 14.19 14.00 Close
Long GDX 5 DEC 14 21 Call .36