Disconnect with stocks and bonds

I can't shake the feeling we've done this before...oh that's right, because we have done this before.  And inevitably one of these two markets are gonna be proven wrong and will reconnect with the other.  And every single time it's been stocks that are wrong and correct to meet back with the bond market.  It's never different this time.   As the market chugs higher and we get new trading signals to go long stocks, just keep this in mind for the big picture.  Keep your stops tight and be ready to bail if things turn south.  


-Jonathan M Mergott

Not a time to be buying gold

We are simply looking at this from a trading standpoint.  What is the market saying right now, and it's saying gold is not the thing to be buying, so find something else to do.  Hold your gold positions, but dont try to trade this.  A lot of things to talk about later, like the rally in the NASDAQ, that has saved it from certain disaster,  but we will get to that later, just know the path of least resistance for stocks is once again higher and for gold is lower, take that into consideration in everything you trade.

-Jonathan M Mergott

Nasdaq situation not improving

Wanted to highlight the daily nasdaq chart today, which is not improving at all.  I have mostly been keeping my eyes on gold and the gold miners and the nasdaq as I feel that these sectors will tell us where things are going.  If the nasdaq begins to break down, we can be certain the Dow and the SPX will follow.  In the event stocks break down, we can also be pretty sure gold will move higher either as a reaction to the move lower, or it will foreshadow the move in stocks by going higher prior to a nasdaq break down.   There is nothing of interest to note on the gold stocks, which are just drifting aimlessly, so let's look at the nasdaq. ..

Bulls are keeping things afloat as it dips near 4000, but there is no momentum to push it higher than the 4150-4200 area.  Price is butting heads now with the down trend line from the top of the head back in March.   Pressure is mounting and there must be a resolve soon so watch closely.   We will likely see a break lower in the next week or two and have a good opportunity to short the nasdaq with a target around 10% lower .

-Jonathan M Mergott