Trading Gold's Break
Commodity reversal not a blip.
Hello from New York where I'm running on the fumes of fumes after young Superfly Macke woke me up at 1:15. He wanted to let me know he missed his Mother (who is lingering with her mom in Arizona after our anniversary trip last week).
A more relaxed person probably would have been able to go right back to sleep after such a wake up call. Not being a relaxed person, I sympathized with the boy and watched both parts of HBO's "John Adams" until dawn. Here's what I'm watching while building the caffeine ramp for tonight's Fast Money:
- Gold is broken. I trade the commodities off technicals and reversals like we're seeing in the GLD are made to be sold. Selling the GLD was my final trade on last night's show, my first idea when I woke up this morning and seems like a decent idea right now, even with the big decline happening as I type. As for the miners... Frankly I never liked them much and I like them even less right now.
- Oil and it's step-sister ETF, the USO (which includes all sorts of fuel) looks borderline broken as well. You can try the USO but, frankly, there's other stuff working better so why would you bother?
- RIP, Zoe, and condolences to Todd-O. Losing a pet is a lonely, heartbreaking experience at any age. Let the grief happen, brother. It's part of the journey.
- JP Morgan (JPM) and CEO Jamie Dimon are having one of the best corporate king-pin weeks in recent memory. The government handed him Bear Stearns (BSC) on Sunday night and JPM is pocketing a cool billion and change from the Visa (V) IPO. Nice.
- Yup, I still like Starbucks (SBUX), right here, right now. The gallons I'm going to need just to get through the rest of the week give me plenty of optimism for SBUX quarter.
- And I like McDonald's (MCD) as a stock but you must be kidding about the coffee being better than SBUX.
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