Trading Plan for 11/14-11/18
Bulls back in control? Levels to watch
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3 weeks ago (October 23rd) I wrote that something significant had changed for $GDX/gold miners.
This past week something technically changed for the gold miners that hasn’t happened since April. In this note I share my thoughts on why that’s important and what I think happens next.
It had closed above the weekly 9MA for the first time in 6 months!
It’s worth noting that while the indices all have yet to break out above their weekly 9MAs, $GDX closed above it for the first time since April(!).
Each week since, it’s closed in the green and last week with the bullish shift in the indices, it outperformed.
For the indices I have been targeting the September CPI highs to hit again this year and since the window was closing, I chose to ‘buy the dip’ using my weekly support on Wednesday at the end of the day. Thursday’s November CPI delivered a tremendous 2 day rally.
I then gave a stop under 1758. 🏆 All three of the indices were at/slightly below my weekly supports, but I decided to go long $RTY instead of $ES or $NQ because $RTY has been the strongest as of late and I thought I’d have the best chance of not getting stopped out on a CPI flush. Therefore I could ride the entire thing. That turned out to be a good decision.💰😎
Summary of Market Action Last Week:
All 3 of the major indices traded chop for the first part of the week, but Wednesday closed near the lows. Thursday morning’s data delivered a rocket ride and all 3 of the major indices rallied impressively. $NQ/Nasdaq futures has been the laggard, but caught up with gusto and rallied the most.
$GDX (gold miners) outperformed all this week, followed by $GC/gold futures and then $SI/silver futures, which has previously been leading the momentum.
$CL/Crude Oil futures pulled back this week, from a high of 93.74 vs my 93.67 resistance but that couldn’t stop $XOP/oil equities from going higher amongst the feverish equity buying.
Here’s how the week closed out:
For the week ahead (11/14 - 11/18/22)