1/6 Daily Commentary

The stock market declined to an uncommon confluence of support.  It hit both the DJI critical support M/A and the SP futures 30-minute M/A.  I consider both key, but on different time dimensions.

I currently hold 4% SDS.  Since I1 is in declining mode my job is to look to short entry.  One key I'm look at is NQ futures which have outpaced blue chips and have held above a relatively short-term M/A, the 25-hour.  This minus 7 points generates a sell signal.  The level will be moving up through the night but is currently a signal at 2266.

I'm still holding SCO short crude on further decline to at least 86.50.  It completed a 5 down yesterday, did a 3 up overnight and this morning, and a 5 down this afternoon in the futures but a 3 down in USO.  If it is stuck in a trading range the top is 88.925.

I'm still short gold and hold ZSL.