Earlier today Chris Kimble's chart of the S&P 500 showed that support was in play and that we should "be prepared" if support breaks. This afternoon he offers an interesting contrarian idea.
Chris comments: One of the fun things about technical analysis is that, at major turning points, you are often presented with very unpopular, uncrowded situations that test your sanity.
The S&P 500 index finds itself on support and Gold is up against resistance at the top of a wedge.
What is the easy trade? Go with the trend! Be long gold and sell the 500 index.
So what would be one of the most unpopular, uncrowded new positions to take? How about buying the index and selling Gold!
Is this a howling good idea or barking at the moon? What an appropriate question today — a full moon lunar eclipse Friday!
