The Alternative Investor
  • Home
  • TRADING BLOG
  • Current Positions
  • Alternative Investor Strategy
  • ETFs
  • About Alternative Investor
  • Contact

Trading Blog         Thursday,  June 18,  2020

6/18/2020

 
MARKETS  UPDATE  (6:00 pm EDST)

In Monday's blog on the broad stock market I wrote:

"If this market is going to turn bullish, it has to rise now and overcome the heavy resistance at the "gap zone" described above."

That "gap zone" in the DOW is between 26,300 and 26,900. On Tuesday the DOW rallied to 26,600, but it has been falling from there and closed today just below 26,000. The S&P 500 also hasn't been able to close its gap.
The NASDAQ, however, has closed its gap, but it seems to be pausing now at the top of that gap. We have no intermarket bearish divergence this week as all three indices have made new weekly highs, but if the NASDAQ makes a new all-time high tomorrow or next week (it is very close) and the DOW and S&P 500 remain below their February all-time highs, we WILL have a strong bearish divergence signal. We are approaching the center-point of our current very wide reversal zone (June 8 - 30), but it is still not clear if we are going to get a high that reverses down or a low that reverses up. We'll have to wait a few more days to see if equities can clear those "gap" areas, or whether that gap resistance will force the market lower into next week.
Still on the sidelines.

Gold and silver prices have been very flat this week. Nevertheless, some technical signals are still suggesting a big move now. The only problem is that, as with the broad stock market, it is not clear in which direction it will be. We will remain on the sidelines for now and wait for a clear top or bottom to trade. This should be forthcoming as we are in the middle of a very strong reversal zone.

Crude oil may have made a significant sub-cycle low last Friday at $37.07 (June contract chart), but the rally from there has not been that strong and seems to be hitting a wall around $40. There's plenty of time for a lower low into next week (as we are still in a strong reversal zone) which might give us a spot to buy. On the other hand, more rallying to a new high (above $42) could also give us an opportunity to sell short. As with the other markets, we will stay on the sidelines and wait for either a top or bottom into next week.






Comments are closed.

    RSS Feed

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012

The Alternative Investor takes no advertising or incentives from any company, institution or investment that is discussed on the website.  Any trading and investing information presented is based on Alternative Investor's independent and unbiased research and analysis of current financial markets.

                                                                                                                                                            LEGAL and DISCLAIMER

All statements and trading/investment information on this website represent solely the personal opinion of The Alternative Investor based on information available at the time of writing and are intended for educational purposes only and are not a recommendation to buy or sell securities, commodities or currencies.  The Alternative Investor is not a licensed broker or financial advisor.  The Alternative Investor presents the trading and investing information on this site in good faith based on his own research into current financial markets but cannot and does not guarantee profit and does not guarantee against any financial losses that result from using this information.  All users of this website and the information presented within it assume full responsibility for their own personal trading/investing decisions and any losses that may result from them.

Trading and investing in any financial market may involve serious risk of loss.  For this reason all traders and investors should never place more money than they can afford to lose in any individual market.  The Alternative Investor monitors several markets and encourages a balanced distribution of funds among them (and others).  The Alternative Investor recommends consulting with a professional financial advisor before making any transactions with financial ramifications.  All trading, investing and financial transactions should always be made in accordance with the appropriate laws and legal regulations in your area of jurisdiction.

The Alternative Investor is an independent researcher and analyst and receives no compensation of any kind from any individuals, groups, companies or institutions discussed on this website.