{+++} It was a tough day for the market and it got a little more unhinged later in the day as we heard about the horrific terrorist attack at the Boston Marathon. It was Patriot Day in Boston and the banks were closed for the holiday. It looks like three or four people are dead and more than twenty folks wounded. Brutal stuff.
Gold actually printed a bigger point loss than yesterday’s mass liquidation and the beating continued. Silver was slammed again, and both went down on even more volume than yesterday.
Gold was never a safety trade in my opinion, it was however a popular trade, and when things become popular they also become crowded. When a trade becomes crowded, it eventually finds more sellers than buyers and it turns into pixie dust. It happens all the time. Treasuries will do the same thing eventually.
Crude oil is getting hit too, and the energy stocks took a tumble today. If anyone took ERY at the open you made a nice trade. It was on the list last night. It opened above my trigger though and ran, so I didn’t take it, (should have), but if you did, congratulations and keep moving your stop up.
The market needed to take a break, its been a big move already this year. The S&P broke the 10 and 20 day simple moving average today, and it actually looks like it may want to test the 50 day moving average at 1540. There is good support between 1530 and 1540, so we may be already nearing a quick end to this sell off. We”ll see.
Get some rest and I will see you on the chatroom in the morning.
Joe