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Silver and gold broke out. The charts have been saying this was coming. However, the issues with the Euro are probably what is really pushing this puppy up. I don’t care the reason though. Reasons are great backdrops for the charts and its nice when it lines up with the direction you want to be with.

I started out the day quickly taking profits on the BZQ from yesterday and half of IAG off at about 10am.

I went into a XRT put spread today around 10:30. This was a mistake, I had no intraday signal to do it, but it wasn’t completely wrong because I was buying based on the daily chart, which technically doesn’t matter what time I bought today. To be perfect, I could have waited. I’m thinking the XRT and other certain etfs NEED to selloff to have matching weekly charts as indexes and the leading stocks. Its not like XRT is some beacon of light amongst everything out there.
-Long June 41 puts, and selling the June 40 and June 38 puts against it.

Next around 2:15 bought a SPY put spread May 116/111 turned it in 30minutes for .11. This was a decent quick trade. It would have been better to hold till close, but there was some serious volatility from 2:30-3:30 going on. I eventually go back into this as the day showed more info by the close.

Bought FXP and EWZ put spread June 68/64.

Bought FXI put spread June 39/35.

Bought BZQ, SSG, EPV, and EDZ.

Bought SPY put spread June 115,116 and sold 110 against it (which is around the 200dma).

Also went into the 2x funds NDX, SPX, RUT HEAVY. Playing a retest and looking for a weekly candle to have a close closer to last Friday’s close. Not necessarily that deep though. We could drop 50 pts on COMPX and it wouldn’t change anything. That is how much room there is for a downmove just this week.

My only worry is that the charts are skewed due to the 2:45 crash. However, of any analysis I’ve ever done looking backwards, I never knew what the intraday action was on those days and what special event may have transpired. You have to go with what it is and right now the charts are saying more down will happen. We trade into the gaps created over the last 2 days. There is nothing long term in the charts for the US markets yet. Could easily roll back up. Emerging markets, and I’m repeating myself, look bad.

In other words I’m reallllllly short right now, but I’m not getting married to Armageddon. Save that for the Elliot Wave and other mysterious decision making tools.

Gold and Silver broke out today, but you know I’ve been in and out of these plays for the past 2-3 weeks. Made gains in IAG, AGQ, and DGP on this breakout today still holding these 3.

Posted a bunch of charts to Chart.ly tonight, but they are down for maintenance. Search for wwwstockrake.

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