Traders will find today's final index and stock closing activity very interesting and it may set the stage for Monday's opening. Here's a quick look of how things ended up for this time-shortened trading day.
Gold & Silver Index Chart - 60-minute interval.
This morning, we were alerted to a potential short-term breakdown occurring in the XAU.X as broad market equity indexes moved higher. By session's end, the XAU.X had traded right back to the levels where the breakdown alert was given. MACD looks to be rolling over and the MACD histogram is fractionally below the zero level. Earlier observations were that shares of Barrick Gold (ABX) looked to be a sector leader, as the stock didn't show as much technical weakness as the sector.
Barrick Gold Chart - 60-minute interval.
Shares of ABX closed back above our horizontal alert level and this plays directly into this mornings observation that this stock is technically stronger than the Gold/Silver Index (XAU.X). Much like the index, MACD is rolling over and the MACD histogram is barely negative. Right now, we'd keep a very close eye on this group, as it could be "the key" for broader market equity direction. If this group goes higher and we get stopped out, we'd be somewhat suspect of broader market equities near-term.
Krispy Kreme Doughnuts Chart - 60-minute interval.
While we were stopped out of our short on KREM this morning, the stock was not able to get through resistance and closed back below our stopping point. Volume was very light throughout the session and this stock remains on our "suspect" list. We like to follow trades even after we're stopped out to monitor what is taking place and keep us on the right side of the market. Readers will remember a bullish play that we were stopped out of in shares of CAT and we're monitoring that stock too.
Caterpillar Chart - 60-minute interval.
Point (A) on the chart shows our entry point for a bullish trade in shares of CAT, but we were "shaken out" and stopped for a small loss at point (B). Since that opening and being stopped out, shares of CAT have made a nice move. It has taken some time but following this trade lets us know that there still seems to be support gathering for the "boring blue chips." Traders will notice the upward trending support on the chart, signifying a strong stock in a "weak market." A pullback near $36 might be an attractive entry point.