A Wild and Crazy Day
Today was an extremely volatile day with the DOW closing up around 70 or 80 points. Next Thursday the Federal Reserve will be discussing whether or not they will raise interest rates. With the extreme volatility we are seeing I do not believe they will raise interest rates. I do not expect big moves in the coming week with this day approaching. I expect the market will stay in a range +-200 from the current level.
The low today in oil was 43.36 and then traded up more than 2 dollars higher. I expect oil to make a higher low and I am looking for a pullback into the 39-43 range. If oil pulls back into this range there would be a buying opportunity for oil and oil stocks. I would be looking to buy SN (Sanchez Energy) in the 4.50-5 range with a 3.80 stop. If VNR (Vanguard Natural Resources) gets down to the 5.80-6.80 range I would be looking to buy with a 5.00 stop.
Today gold was up 8-9 dollars. I now have a sell signal on the daily charts for gold. I would look to short on any bounce near the 1128-1140 range. If the Federal Reserve decides to leave interest rates unchanged gold will spike up and the market is going to explode. If the Federal Reserve decides to raise interest rates gold will get hammered and I believe the market will have significant volatility to the downside.