UPDATES ON GOLD AND THE BROAD STOCK MARKET (2:00 pm EDST)
Today St. Louis Federal Reserve President James Bullard said in a public interview that he expects the first interest rate increase the Fed could make could come as soon as 2022. This, of course, is even earlier than the unexpectedly early date of 2023 seen in the Fed's "dot-plot" data released Wednesday afternoon that caused the broad stock market to take a dive. One wonders if these Fed officials are deliberately trying to crash the markets.
Bullard's announcement is being blamed for today's steep drop in the DOW (about 400 points at the time of this writing). Significantly, however, the S&P 500 and NASDAQ are not falling that much at the moment, perhaps indicating this is a temporary "knee-jerk" reaction from the DOW (arguably the most "sensitive" of the three indices). The DOW has now broken clearly and decisively below its 15-day and 45-day moving averages. This means it most likely is in the process of falling to its final medium-term cycle bottom and will not make a new all-time high. The S&P 500 has now broken below its 15-day moving average and is at this moment testing its 45-day moving average. The NASDAQ, however, is well above both its 15-day and 45-day moving averages and seems buoyantly poised above a support line around 1,400. This index hasn't yet made a new all-time high this week (the S&P 500 did so on Tuesday), but it is close. If it does this next week with or without the S&P 500, we will have a VERY strong bearish divergence with the now falling DOW and it will be very close to our June 23 likely "turning point" in this current reversal zone. I will analyze this further this week-end and may issue a short-sell trade alert on Sunday or early next week. Let's remain on the sidelines of the broad stock market for today
Gold and silver prices are remaining stable today (so far) after a steep two day drop. I am going to hold my long position in gold for now with a stop loss based on a clear break below $1750 (the price is currently at $1769. As I discussed in yesterday's blog, there is a good chance that gold is close to a sub-cycle bottom and could rally soon. Silver is also likely finding a bottom here. Let's stay on the sidelines of silver for now.
Today St. Louis Federal Reserve President James Bullard said in a public interview that he expects the first interest rate increase the Fed could make could come as soon as 2022. This, of course, is even earlier than the unexpectedly early date of 2023 seen in the Fed's "dot-plot" data released Wednesday afternoon that caused the broad stock market to take a dive. One wonders if these Fed officials are deliberately trying to crash the markets.
Bullard's announcement is being blamed for today's steep drop in the DOW (about 400 points at the time of this writing). Significantly, however, the S&P 500 and NASDAQ are not falling that much at the moment, perhaps indicating this is a temporary "knee-jerk" reaction from the DOW (arguably the most "sensitive" of the three indices). The DOW has now broken clearly and decisively below its 15-day and 45-day moving averages. This means it most likely is in the process of falling to its final medium-term cycle bottom and will not make a new all-time high. The S&P 500 has now broken below its 15-day moving average and is at this moment testing its 45-day moving average. The NASDAQ, however, is well above both its 15-day and 45-day moving averages and seems buoyantly poised above a support line around 1,400. This index hasn't yet made a new all-time high this week (the S&P 500 did so on Tuesday), but it is close. If it does this next week with or without the S&P 500, we will have a VERY strong bearish divergence with the now falling DOW and it will be very close to our June 23 likely "turning point" in this current reversal zone. I will analyze this further this week-end and may issue a short-sell trade alert on Sunday or early next week. Let's remain on the sidelines of the broad stock market for today
Gold and silver prices are remaining stable today (so far) after a steep two day drop. I am going to hold my long position in gold for now with a stop loss based on a clear break below $1750 (the price is currently at $1769. As I discussed in yesterday's blog, there is a good chance that gold is close to a sub-cycle bottom and could rally soon. Silver is also likely finding a bottom here. Let's stay on the sidelines of silver for now.
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