Not unsurprisingly the combination of both medium and long term resistance on the S&P stood up to a first post holiday assault. I’m sure we’ll be revisiting the 2100 mark soon enough but for now it’s shake out time. Patience is key here and at minimum we want short term context to align before attempting any long positions.
My favorite quarter of the year is slowly drawing to a close, with Memorial Day in the U.S. demarking the beginning of the long awaited vacation season. It’s been a long winter and we haven’t really seen much of a spring over here in the Mediterranean to be honest. The past three months brought us only a few warm days as the general theme was dominated by rainy weather, cold spells, and even a patch of frost in late April that damaged a good number of vine crops up North in Southern France.
As equities continue to gyrate over respective medium term support levels I do not feel particularly tempted to get sucked into placing any haphazard directional plays. Precious metals are not making it easy for us either but appear to be more promising as there remains significant upside potential.
Good things come to those who wait. After a bit of downtime over the last two weeks, and focusing a bit on options and the educational front, it’s time to snap back into action. I’m seeing some very interesting formations across the board this morning, so let’s dive right in starting with equities.