We are now in the middle of a time zone where strong reversals can manifest in all of the markets we follow, so we need to examine the trend of each right now.
The broad stock market is trending up this week, and so a reversal here would be down. It should also be noted that the DOW and S&P 500 are both making new highs this week while the NASDAQ hasn't yet done so, which is another bearish sign. On the bullish side, however, all directional momentum in these markets is still pointing up, and until we get a bearish momentum signal in these charts, I am reluctant to sell short, even though it is tempting to do so now because the charts are looking overbought and toppy and timing factors suggest a reversal here. If we get a bear signal tomorrow, we will consider short selling. Remember, we must always keep in mind that the Federal Reserve's "tampering" with the natural cyclic flow of these markets over the last several years works against short selling by artificially propping the markets up. Still out of this market for now.
Our crude oil long positions are doing very well at the moment with the price pushing above $97 today (we bought crude at $91 on 3/6), and I am tempted to take profits here because of the possibility of a reversal. Several technical and momentum indicators, however, are still quite bullish, so even if a correction occurs, it may not be that deep. We will stay long for today and wait to see what the charts look like tomorrow.
As anticipated, we are getting a slight downtrend in the precious metals this week, but they are holding well above our support levels ( $1500 -1530 in gold, $26 -27 in silver) and we are still long. I will repeat here that the technical picture for gold and silver continues to look very bullish, and (barring a break below the supports) we should stay long now because a strong rally looks imminent.
We are getting ready to buy the Swiss Franc as it seems to be making a double bottom to its March 14th low, further supporting the idea that this is the start of a new cycle in this currency. I would like to see a few more bullish momentum signals before going long, however, because we try to hold our currency positions for as long as possible and would like a very high level of confidence in the trade. We try to avoid short-term trading of currencies on the website (see Alternative Investor Strategy for my suggestion of using foreign currency -usually the Swiss Franc- to periodically hedge against a devalued dollar). Still waiting to buy.