Gold Bugs or Goldfish

26Aug1:13 pmEST

A Staring Contest for the Ages

The initial reaction to Janet Yellen's apparently hawkish language this morning seemed hell-bent on calling her bluff, with the rate-sensitive sectors rallying along with commodities. However, an abrupt downside reversal ensued, virtually across the board, after Stanley Fischer reinforced the hawk case for higher rates. At the moment, we have...

26Aug10:51 amEST

Calling Yellen's Bluff

Despite Fed Chair Yellen just saying that the chance for raising rates has "strengthened," Treasuries, REITs, utilities, commodities, and stocks all rallied, likely hinting that the market is calling Yellen's bluff she will not, in fact, actually raise rates. I am reminded of the following hand between Phil Ivey and Paul Jackson as an analogy...

25Aug3:49 pmEST

Stock Market Recap 08/25/16 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

25Aug3:47 pmEST

Keeping Lane Discipline

Despite another red day, biotechnology stocks in the XBI ETF (for small/mid-cap biotechs) held the $59.80 level, denoted below on the weekly timeframe. As long as buyers can defend that level, it is tough to get too bearish on the bios, too soon. However, as we noted yesterday, the sector is effectively back in the "neutral zone," below its...

25Aug1:10 pmEST

Hey Jude, Don't Bring Me Down

In light of Muddy Waters disclosing that it is short Saint Jude Medical earlier today, we are conducting what is usually a worthwhile exercise in terms of keeping tabs on the medical device sector in general. Specifically, medical device plays have enjoyed a rather strong 2016 thus far. And if STJ plunging today off the Muddy Waters note fails...

25Aug10:31 amEST

The Narcos Rally

Netflix is enjoying another enthusiastic open this morning after an upgrade. For a few weeks now, NFLX has seen a pattern of strong opens followed by lackluster afternoon action. So, I am looking to see if the marquee issue can clear the prior $97.75 resistance level with authority today, amid the plethora of usual cheerleading in the name. ...

24Aug3:43 pmEST

Stock Market Recap 08/24/16 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

24Aug3:41 pmEST

Back in the Neutral Zone

With an afternoon push lower, biotechnology stocks in the IBB ETF cracked back under $290, their prior breakout level. On the IBB daily chart, below, note the uptick in sell volume on the move. I am sure MYL in the news today is not helping the cause. But the INSY downside reversal is not pretty, either. Overall, upside momentum in the market...

24Aug1:05 pmEST

Meanwhile, in Wyoming

We will get our speech, finally, from "Queen" Yellen out at Jackson Hole, Wyoming, on August 26th (Friday) at the Federal Reserve Bank of Kansas City's annual Economic Policy Symposium. That speech should shed at least some light on the hawk vs. dove debate into the next Fed meeting. In the meantime, we have a slow summer tape with precious...

24Aug10:36 amEST

Gold Bugs or Goldfish

In sports such as wrestling and in poker, a "fish" is slang for a weak player. Given the suddenly-poor action in precious metals and miners of late, it may be easy to quickly lurch to the side that gold bugs are back to being fish in a long-running bear market in commodities. But recall just how steep the complex had become after their rally...