There was no pre-opening alert this morning as I was a prior engagement that is going to keep me busy through Wednesday of next week as the Prospectors and Developers Association Convention begins on Sunday.
Stocks snapped open this morning with the SPY:US opening at $585.56; trading up to $589.03 then falling back to $583.27 as traders are struggling with the horrific action in the “MAG Seven” group and especially the dreadful action in NVidia Corp. (NVDA:US) and Bitcoin both of which are losing more ground today.
I warned of the possibility of a short, sharp crash on Monday if the markets are unable to mount even the slightest of bounces today. So far, the DJIA has lost over 255 points of the morning high, with NVDA:US giving up over $4 of earlier gains.
For speculators in the GGMA 2025 Trading Account:
- Buy 10 contracts SPY April $570 puts at $5.25 limit
If the SPY:US is down over $1.00 by 3:30 pm, add another 10 contracts. If it is up $1.00 by then, cut bait and get flat into the weekend.
Gold
GLD:US broke the 20-dma at $266.24 and is now headed to the 50-dma at $254.84, which is $8.00 lower than the current price. Gold bugs around the Twitterverse are ready to commit hara-kiri, but the reality is that gold desperately needed this pullback to lay the foundation for a much sounder assault on the $3k level, which I believe is coming before a more serious top is put in.
Gold producers are making literal fortunes with gold at $2,854 and considering the fact that it was trading at $2,661 on the day after New Year’s, gold added over $300 per ounce in 60 short days, moving from a gradual rise to a vertical rise in record time.
I want to see the GLD:US back at $254 within the next few weeks, then stabilize, trade sideways while it works off the overbought condition, and head straight north for a move to my 2025 target of $3,650 or $325 for the GLD:US.
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