2016 September – Volatility is back and keep accumulating gold

S&P 500 – Volatility is back

The market is simply supported by FED’s balance sheet, without fresh round of QE 11.11% , S&P 500 -0.35% will not go back to its previous ascending channel.

FED’s balance sheet will keep a strong bottom for S&P 500 -0.35% around 180, should FED hikes rate in September. Even if FED doesn’t raise rate, which is most likely the case, a prospect of Trump presidency would likely be an excuse for high market volatility for the next few weeks.

Recommended strategies:

1. Short out right with a stop at $220, and cover half of shorts at $200 and $190 respectively.

2. Long 2017-Jan-PUT Option at strike $190 or $200, close position when market starts to dip below $200.

Gold – Keep accumulating

Keep buying gold 0.18% at these levels, you can’t lose. It is the central banks who are losing controls. But until central banks find out what path forward they will together take, expect gold 0.18% stay side ways, and make this an opportunity of accumulating.