This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Precious Metals and Equity Prices

NEW YORK ( TheGoldAndOilGuy.com) -- The past couple of months have been a roller-coaster ride for investors and traders. Overseas headline news has made investing and trading more difficult than normal because of prices gaping up or down at the opening bell several times per week.

The next two weeks are going to be even crazier because of the Greek election and Spanish bank bailout.

It looks as though the Spanish banks are getting bailed out, which will be similar to the 2008-2009 bailout in the United States. This news marked up stocks and commodity prices during overnight trading Sunday. The major indexes were up 1% or 2% across the board.

Looking at the technical and sentiment, this is what I feel will take place and how it can be attacked.

Major stock indexes and commodities will be trading at resistance at the open on Monday.

The dollar, which was hit hard in overnight trading Sunday, is now trading at support. A bounce in the dollar and sellers stepping in at resistance could pull the market down for session or two.

The big question is what do traders do with this jump stocks and commodities?

The first 15 minutes of Monday's session short sellers will be panicking out of their positions and getting stopped out. Once the dust starts to settle, resistance and an oversold dollar may do their part and force the market lower later in the day.

If we add sentiment into this picture -- thinking of the masses covering their short positions in a big way -- we know from past events that when the masses all trade in the same direction the market quickly reverses in the short term for one to three days.

So what does investors do if they are short the market this week, as I am?

I would wait 15 to 30 minutes to let things unfold and see what the price, volume and sentiment is doing. Keep in mind morning trends tend to stall out and roll over at 10 a.m. or 11:30 a.m. ET.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $131.85 1.70%
FB $79.87 0.67%
GOOG $537.06 0.89%
TSLA $246.52 -0.38%
YHOO $43.05 0.47%

Markets

DOW 18,149.32 +107.78 0.60%
S&P 500 2,118.92 +14.72 0.70%
NASDAQ 5,079.9830 +47.2320 0.94%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs