GLD DBC XLE CF GDX 

This is Scott with your Chart of the Day. I want to take a look at the Gold chart here, this is the Gold SPDR ( NYSEARCA: GLD ) because I think that this might have a chance to get going, and I will tell you why; because commodities are leading in this market.

If we look at the DBC ( NYSEARCA: DBC ), this is the commodity tracking ETF. You can see, commodities are really close to new highs here. And if you saw the market today maybe you noticed that XLE ( NYSEARCA: XLE ) Energy stocks are racing. A nice big jump here on heavier than average volume.

Some agriculture stocks are also catching a bid, like CF ( NYSE: CF ). A really big move off of the 50-day moving average, and again, look at that volume. Commodities are where you really want to be, in my opinion, in this market.

I am taking a look at the GLD SPDR ( NYSEARCA: GLD ) here. If I zoom out you can see a pretty clear level of resistance starting from this real breakdown area in August-September, up 20.20, so a clear level of resistance. Can’t get above, can’t get above, can’t get above, can’t get above, and can’t get above. But since October you can see that I have pointed out some pretty noticeable higher lows here and a retest of this resistance zone.

Now, this is really the first time where we have had sequential higher lows after a little bit of a retest and another test. Because as you can see here, we had a retest, breakdown, retest, breakdown, retest, breakdown, but this time the breakdown was at a higher level. I am also attracted to the Gold SPDR ( NYSEARCA: GLD ) as opposed to the Gold Miners ( NYSEARCA: GDX ).

As you can see, GLD ( NYSEARCA: GLD ) here is above all the major moving averages. Where, if I go to GDX ( NYSEARCA: GDX ) it is still getting slammed right at that 200-day moving average, that’s the blue line here. So while this may also start to catch a bid, you can kind of draw the same pattern here, and just now we are just kind of starting to get a little series of higher lows.

But again, that 200-day moving average is really kind of acting as a ceiling. I just want to have an alert on that moving average maybe around that level. I will take a look at it when it gets above the 200-day moving average and can change the trend.

In the meantime, I have a small position right here in GLD ( NYSEARCA: GLD ) and I want to see it get above and stay above this downward-sloping trendline. And if it can do that, that could be a definite change in character for Gold as a sector and a commodity to trade. Because as many gold bugs know this has been just a nightmare scenario.

I see a lot of gold bugs complaining about the volatility of Bitcoin but I will tell you, this is also quite painful and has been a painful trade. I do think that it does have a chance to get going, maybe it will do it tomorrow leading up to whatever Jerome Powell says out of the Federal Reserve, we will have to see. But GLD ( NYSEARCA: GLD ) is definitely something that I want to keep an eye on going into tomorrow, and I think it might make sense to add it to your watch list too.

T2107 T2108 

NFLX PTON 

Fitz In Five here and we’ve got Netflix ( NASDAQ: NFLX ) taking a dive (I just made that up).
Anyway, this is the thing, I think the company opened at 20 percent down or something, they just had really brutal numbers, I don’t need to tell you any more about it, the chart speaks for itself. Peloton ( NASDAQ: PTON ). These are two stocks that really got crunched.

With respect to Peloton ( NASDAQ: PTON ), the downtrend is still intact. The thing about this is, they announced today that they are halting production. And the reason they are halting production of those wonderful bikes that make your butt really, really sore, and when ridden by heavy people, who aren’t used to riding bikes, they wind up sitting in the corner of the living room where the handles make great coat hangers or if you are ironing your clothes you put them there. That’s great, I did the same thing ages ago with a Bowflex, lot’s of hooks there.

This could turn out to be a buying opportunity for Peloton ( NASDAQ: PTON ), you see how it was up today, right? But here’s the thing, no. Why would you want to buy something like this? This is a massive head and shoulder pattern here. The bloom has come off the rose, nothing bur thorns here. I would totally stay away from this, without a doubt.

Now, Netflix ( NASDAQ: NFLX ), we’ve got a similar thing here. Let me look at the weekly chart. Here’s the thing, if you are looking at Netflix ( NASDAQ: NFLX ), like oh, this is a buy, and I bought some today, I will explain that in a second, you better be looking at it as a short-term trade. Because this has been a brutal sell-off. It started a while ago and while the high was at 700.00, this thing just closed down 44 percent. Do you think that is enough? Do you think that is enough of a pullback? I could show you a bunch of stocks, most of them owned by Cathie Wood, genius stock trading savant that she is, that have gone down a heck of a lot more than this. I would absolutely stay away from this.

However, with that said, 3 standard deviations are these Bollinger Bands and they give you a picture, that 2 standard deviations, which is the typical one, that it doesn’t. This thing gapped down and closed way below these lower Bollinger Bands. Typically, you are going to get kind of a snapback. But when you get a stock that closes below 3 standard deviations, and this has already been drifting lower, this is a recipe for a bounce of some type.

It is kind of like against the laws of physics or trading for the stock to be this far out away from the mean, which is the 20-day moving average, and yet, here we are. The low Bollinger Band is 396.93. The close today was 396.80. So this is a steep, steep, steep correction that is ripe for a rebound. I wouldn’t look for much, though, but I would look for some. Because look at the massive selling today, almost 60 million shares. That’s a lot of puking. And after a puke fest is pretty much over you will get a little puking rally. That is what this is all about.

So here’s how I would trade this, don’t try to pick the bottom. You have got plenty of time to get in. If it does start rebounding, the high here is 409.15, I would set an alert at like 405.00, just to give you the heads up. And at 409.16, that is when I would look to start buying this thing. You get a little early start, okay, fine, whatever. But if the stock rallies above today’s intraday high of 409.15, then you know the selling is over. Because if it wasn’t over the stock would not be able to rally above today’s intraday high.