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Tuesday, July 2, 2013

Stock and ETF newsletter 7/2/2013: $SPY $SDS $SVXY $UVXY $GLD $GDX $UGL $RGC


The market opened pretty strong but again capped at 50 SMA. I decided to throw in a small piece of $SPY short through $SDS. My original plan is to see it top at 50 SMA and slowly move down as a swing play. However the CNBC Egypt news kicked in and the market just plump. I really didn’t like it (even though I was in the short side) because the Egypt events should hardly play a role here. Suez canal blockade? Nothing not even close to it had happened since the 1970’s and now Egypt can hardly put a government together and people worry about she blocks the canal against the Western? No matter why market sinks and oil flies high, Egypt is not the reason.
I out my $SDS as a day trade and started to look for the stabilization and potential drop of volatility. When the $SPX stalled around 1608 area, I in some $SVXY. Market did squeeze back in the final hour and now the $VXY short idea is well in money.
Just after market close, Egypt government issued a statement that it will cooperate. What a drama? Let us see how the $SPY and $SVXY react tomorrow.
I’m holding $SVXY in full position.This week is a shorter week, so I will get out tomorrow no matter what.


The gold $GLD and miner $GDX retreated big today. Yesterday I trimmed 1/3 of my $GDX. This morning  $GDX shows weakness and failed to hold previous day’s range. I out remaining 2/3 when it failed to hold $24.2 with profit.
It is a clear heavy day for $GLD, not only because it falls, it falls when the market sells. The $GLD proves again it is not any sort of “safe heaven” anymore. I out all $UGL position today with profit. The $GLD bounce played out well. In mid/long term, I think $GLD could still go lower. I may not touch it again till it run up/down of this gap area.


The fundamental is still weak but the chart looks attractive to me. Daily chart give me a potential break up, and weekly chart shows me a cup and a handle. It is not the best time to initialize a long as the hot summer days are always difficult to trade. I just throw in a small long position and maybe give it sometime to play out.

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