The markets have not changed much since last Friday's blog. The broad stock market continues to be buoyant and seems reluctant to turn down. Although momentum remains bullish, there are several other factors indicating this market should be turning down soon. This is why I am cautious about going long right now. Of course, market manipulation favors the bulls, and this may explain the market's current buoyancy. This factor must also be taken into consideration when trading. It is possible we could see the market edge up higher into August before we get any serious correction. I am remaining on the sidelines for now as directional signals are ambiguous and we are still in a time period for a strong reversal.
Gold is holding above its support around $1300. Silver broke below its $20 support last week and this is now acting as slight resistance to any price rise. As I mentioned in the last blog, there is a zone of support for silver down to at least $19. The price over the last several days is hovering just under that $20 mark. Medium-term momentum is still bullish, so I am going to stay with my long positions in both gold and silver for now in anticipation of at least a short-term rally.
Crude oil continues to correct down, but it is now approaching a support area around $102 and we are still within a time zone for a reversal which suggests the market could turn back up shortly. The correction so far has been a little over 5% which is smaller than what I was expecting (but it may not be over). Despite this downward correction, momentum in the market has remained almost 100% bullish and this is why I haven't tried to sell it short. If support around $101- $102 holds and momentum remains bullish, then the signals will be telling us to go long. We are still out of this market and will watch now for a possible reversal to the upside.