Mighty Metal Mole

Mario Draghi basically phoned it in this morning – apparently he saw his shadow and we’ll get six more weeks of winter. Works for me and apparently everyone else as the spoos remained almost unaffected during his speech. Seriously though, it’s actually refreshing to see markets become less sensitive to these types of announcements and I’m taking this as a positive.

Last week’s worries seem all but forgotten as the NQ missed its all time highs by just a few ticks today. I am still looking for all those bears who crawled out of the woodwork earlier this month predicting a major retracement. For some reason they have all disappeared – one wonders why. Good riddance. Well you all know my favorite truism correlating certain body parts with opinions – apparently everyone has one and when it comes to trading they both are worth about the same.

Here are the spoos, now deep in bullish territory and with both daily SMAs below as future support. Both charts by the way show us that the 25-hour SMA has carried the tape higher. You swing traders and scalpers should take notice as we often see touches early in the mornings.

Meanwhile the Mole has metamorphosed into the Mighty Metal Mole – good things are happening on the gold front and I’m getting quite giddy down in the evil lair:

The reason for my irrational exuberance is our gold campaign which continues unabated. As of right now we are holding the 2R mark just nicely. Your stop should now sit at 1288.9 and don’t you dare take profits prematurely. Look at the weekly panel on the right – we are now peeking above the 25-week SMA and that is usually when the big boot has dropped to stomp on the gold bugs. Which if it happens is just fine as it would lock in our 2R win. However, if against all probabilities, it does not happen then we may see a major push higher as gold finally overcomes long term resistance. Somewhere above 1290 we may see this turn into a short squeeze and you better have your helmet ready if it happens. Keeping my fingers crossed. We are very well positioned here and this has turned into one a very promising campaign. Love it.

Three more goodies below the fold – secret decoder ring required:

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Cheers,