If you\u2019re not an active trader, you\u2019ll learn skills that can make you a far better investor.<\/p>\n
Stocks<\/h2>\n
The S&P 500 ran right into resistance at the 50-day MA yesterday. Then it turned back down and closed on the lows. The bulls simply could not muster enough momentum to break out to the upside.<\/p>\n
Today… I\u2019m thinking it\u2019s the bears\u2019 turn to show how little momentum they have.<\/p>\n
The S&P 500 has immediate support at 2328. If it loses that level then it should open the door for a larger move lower towards the 2300 level.<\/p>\n
On the upside… resistance is at 2352-ish. A decisive move above that level could open the door to a move towards 2385.<\/p>\n
I want to lean bullish here. But the S&P needs to get above its 50-day MA before I\u2019m willing to add much more exposure to the long side. Otherwise, I\u2019ll wait for a stronger decline and extremely oversold conditions on the technical indicators before stepping up to buy stocks.<\/p>\n
Gold and Gold Stocks<\/h2>\n
Gold stocks got slammed yesterday. There\u2019s no other way to put it. The gold sector lost almost 4%. It was the worst performing sector in the market.<\/p>\n
But that\u2019s a good thing.<\/p>\n
We\u2019ve been expecting a decline in the gold stocks. And we\u2019ve been looking to add exposure on that decline. Now we have a chance to do just that.<\/p>\n
Aggressive traders ought to be looking to buy into the gold sector on a decline early this morning. We\u2019re probably not at the bottom just yet. But gold stocks ought to be close enough to a bottom here to offer a good risk\/reward setup for adding at least some small exposure.<\/p>\n
Elsewhere<\/h2>\n
Tomorrow is option expiration day… when anything goes.<\/p>\n
There\u2019s often no rhyme or reason to the action on the third Friday of the month. It\u2019s usually best to avoid trading right in front or right after that day \u2013 unless there\u2019s a set up that\u2019s so compelling that it\u2019s worth the risk of stepping in front of computer trading programs.<\/p>\n
I’ll update regular readers on these trends throughout the day on Jeff Clark Direct<\/a><\/em>.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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