Here's what to look for..

7:30 AM EST The trading today will be somewhat treacherous heading into the Memorial day weekend. The volume will be lighter than usual and is some big money people want to take stocks up of down, they will be able to. The action going into the close yesterday was certainly bullish and the futures are higher. That would normally make me confident that the market will head higher for the day, however the pre-holiday vacations will make for some unpredictable action.

I am keeping an eye on Gold (GLD). While the risk-reward is not where I want it to be yet, it can certainly become a profitable looking trade soon. I need to see Gold break strongly above $1010 before the risk-reward becomes favorable, but it is almost there. People have been looking for Gold to become a bubble for a long time, and I think we are close to starting to inflate here. Look for it to break above $1010 before getting long, but keep an eye on it. Until next time, stay low risk..