BRIEF MARKETS UPDATE (2:30 pm EST)
Not much has changed since my last post.
None of the three broad stock market indices (DOW, S&P 500, NASDAQ) are making new highs this week so we don't have a bearish divergence signal to short sell this market yet. We are just past the center of a strong reversal zone that ends early next week. Could this market turn down now? Yes, but I would still like to see intermarket bearish divergence (one or two- but not all three- indices making new highs) before committing to a short position. Let's see if that happens early next week. Still on the sidelines.
Gold and silver prices are rallying strongly and supporting the idea of a new medium-term cycle beginning on Dec. 12. We are, however, right in the center of a strong reversal zone specifically for these metals so I'm still reluctant to go long as a turning point could be imminent at the top of this steep rally. If the longer-term bullish picture of this market is correct, we will have plenty of time to get in on it at a less risky entry point. On the sidelines of gold and silver for now.
Not surprisingly, the U.S. Dollar Index is down, but it is now at a strong support line around 92. This week's reversal zone's can still influence this market, and a reversal up in the dollar could turn gold and silver prices back down for at least a short-term correction (and a better entry point to go long).
Not much has changed since my last post.
None of the three broad stock market indices (DOW, S&P 500, NASDAQ) are making new highs this week so we don't have a bearish divergence signal to short sell this market yet. We are just past the center of a strong reversal zone that ends early next week. Could this market turn down now? Yes, but I would still like to see intermarket bearish divergence (one or two- but not all three- indices making new highs) before committing to a short position. Let's see if that happens early next week. Still on the sidelines.
Gold and silver prices are rallying strongly and supporting the idea of a new medium-term cycle beginning on Dec. 12. We are, however, right in the center of a strong reversal zone specifically for these metals so I'm still reluctant to go long as a turning point could be imminent at the top of this steep rally. If the longer-term bullish picture of this market is correct, we will have plenty of time to get in on it at a less risky entry point. On the sidelines of gold and silver for now.
Not surprisingly, the U.S. Dollar Index is down, but it is now at a strong support line around 92. This week's reversal zone's can still influence this market, and a reversal up in the dollar could turn gold and silver prices back down for at least a short-term correction (and a better entry point to go long).
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