Gold has has been strong the last few months and it’s time to pullback to the $850 price. I sold almost all my gold stocks and will wait for this to pull back.

Commercial real estate IYR looks good to buy. I bought the URE which is the 2x long for a trade.

Russell small caps are read, I bought the UWM, wants to trade into $20 range.

I am long BGU, QLD,  UYG, SSO and think the market has temporarily bottomed test the lows of November 21. Dow, NASDAQ and S&P 50 are moving higher with strong volume. If we can lose inside the range of Friday than we are looking good. We also see gold pulling back which is a normal correction since the GLD has gone almost straight up from $78 to $98. GLD should pull back to between $80 -85 where I would buy again.

Still holding onto AKAM which could not break down below $17, thats a good sign.

What a day with option expiration day on Friday. Even with this the market could not break down below the November 21 lows. Below is the SPY which closed above the low of the day which good. I am in SSO and QLD which are bullish plays. Note this is just a trade for a few days.

I’m still in AKAM which acted great and went higher on stronger vol.

The IYR (commercial real estate ETF) acted strong. I will enter the URE on Monday.

I like the action on AKAM today and went long. It had a nice breakout on Feb 5 and pulled back on lighter volume with a retest. Today is closed higher on stronger volume. $23 looks like resistance.

I also went long QLD and BGU.

I am still holding on to my FXP with a target sell at $45-48.

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The financials XLF are hovering at the $8.50 to $9 range and may bounce up. I have a position in the FAZ which is the 3x short and may get stopped out.

Did I say I like solar? TAN at $7.18 still looks good to go up to $9. I am also in YGE which looks good to $7.50. ENER had nice sign of strength on 2/9 and I bought some on Friday…may a little early and should have waited to the pullback. This should go up to $40 price.

TLT broke the ride up (at$ 102.41) on Friday and will come back down to $100. If it gets into $96 then I might buy this again. Its too late to short as it’s in the middle of the fall….wait.

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Yesterday I talked about the TLT trade going short the TBT. A reader asked me why not just go long the TLT? Well the TBT is 2x the movement of the TLT and there is not 2x long the TLT…that I know of. So I sold a vertical put spread (options) which means I have a define risk and reward.

Yesterday I also went long the SDS which went up +9.2. I expect this to continue up to the 88-97 price point which means the overall market will head down.

Jeff Bierman, Joe Kinahan and Scott Sheridan from Think or Swim presented a great talk on the “20 Myths of Trading”

Check out the video below.

Today’s action was sleepy on the overall market with little movement. In addition we are over bought and ready for a pullback.  I decided to go long the TLT by shorting the TBT…huh?? Yes, I shorted the double short which means I went long….got that.  The TLT did not fill the gap which it may tomorrow so I am holding on.

I also went bearish on the S&P and bought the SDS which is 2x short the SPY. The chart below is the SDS which shows good support at $70-71. We pulled back on lighter volume and should head up to the $90-95 range. Lets see how the market pulls back this week.

In my previous post I sold my position in the TBT which is the short for the TLT (see chart below). The TLT looks like it still wants to fall down to 100 where there is good support. This means the TBT could run up to $52 then head down to $43 for a $9 fall. If the volume is light on the TBT at $50-52 I will short this.

Oil related stocks are holding well. I have positions in USO and PBR and HK. Below is a chart for PBR where I entered at $26 on the pullback to support. Its acting nice and should run up to$ 34-35 where I would sell if volume dies.

HK had a similar pattern as it pullback on lighter volume in the green circle and where I bought at $19.50. This should run up to $25.

Gold has had a great run the past 2 weeks and due for a pullback to $80-84 on the GLD. My miner stocks like DGP, RGLD, GBG, AUY, GG have had great runs +30-40%. I have sold most of the positions and will buy back on the pullback.