Why We're Watching Gold, the Dollar, and Cryptos Hello, Savio. Last Monday here, May 17, I pointed out that the SPDR Gold Trust ETF (GLD) was on the verge of a major breakout with volume increasing. Then, later in the week, GLD finally broke above a major trend line with increased volume. 
That’s why, last Thursday, I recommended a new swing trade via a GLD Debit Call Spread. While we’re hoping GLD stays above that trend line, we got a bit of a wrinkle later in the week that could affect this play. Dollars and Cryptos Last week, I spotted some unusual prints on the U.S dollar. The Dark Pool always enters two specific ETFs before we get a big move in the dollar. You can see from the chart below that the dollar just fell below a support trend line. 
The dollar usually moves inverse to gold – when it goes up, gold goes down… and vice versa. That is why we’ll be watching this week to see if the dollar stays below that trend line. I am wondering if this has anything to do with the news from the Federal Reserve that it will release a research paper this summer considering the creation of a central bank digital currency. Other countries are moving fast toward developing digital currencies, including China. China made big news last week for its crackdown on cryptocurrencies – but the digital yuan is likely bigger news, and it could undermine the dollar’s position as the global reserve currency. I found it ironic that at the same time I was seeing the prints on the dollar that Bitcoin took a big drop down. Here are my posts on the WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU) from May 17 and May 19: 
Bitcoin dropped 50% on May 18, which you can see in the chart below.
Ironically, this happened after we learned that DarkSide, the group of hackers behind the Colonial Pipeline shutdown, has raked in $90 million in Bitcoin ransom payments over the past nine months. Watching Comcast This week, I will have my eye on Comcast Corp. (CMCSA). Last week, heavy Dark Pool activity came in at $55.25. I spotted 4.5 million shares trading hands that price. 
So, I am bullish above $56.50… and bearish below $54. If Comcast hits one of those targets, I hope to put together a trade for you. This Week’s Levels Let’s check out the key levels I am watching this week for a couple of the major index ETFs. For the SPDR S&P 500 Trust (SPY), I’m bullish above $420 and would expect to see a breakout of this channel. I’m bearish below $414 for a retest of the lower trend line or possible breakdown. 
In recent days, we have had very heavy Dark Pool prints on the Invesco QQQ Trust (QQQ), the Nasdaq 100 ETF, at various levels, as you can see below. 
Based on the trend lines I have drawn on the chart below… 
… this week on the QQQ, I am bullish above $330 for a possible move up to the next channel trend line and bearish below $314 for a possible move down to the bottom trend line. Finally, I just wanted to let you know that I will be on vacation next week, from May 28 until June 2. I will not be sending out a Dark Pool Trader Weekly Review next Monday (or Tuesday), but I will be watching all our trades – and will send out an alert and text if we need to execute any trades. As well, the stock market and the InvestorPlace offices, including Customer Service, will be closed on Monday, May 31, in celebration of Memorial Day. I’ll see you back here in two weeks. Have a great holiday weekend! Happy trading, 
Stefanie Kammerman,
Editor, Dark Pool Trader P.S. If you haven't already, I recommend signing up for our text service. Every week, I'll send you via text one to three trades to make. While I also send my trades via email, I send the texts first, and they are where I'll "mark" our entry and exit prices. |
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