MARKETS UPDATE (9:30 pm EDT)
Gold and especially silver prices shot up strongly today but then fell back down and closed near the bottom of today's range (bearish behavior). Gold soared to a new all-time high of $2427 and closed around $2344. Silver made a new three-year high at $29.68 and closed near $27.94. A significant sub-cycle correction could be imminent as today's tops are happening inside a strong potential "pivot point" for both gold and silver that continues into early next week. We'll continue to watch for a strong correction down that may give us another buying opportunity in both metals. We are on the sidelines for now.
We are now two days past our last reversal zone, and the broad stock market continues to push lower. The DOW has been leading the way with a sharp decline, but the S&P 500 is not far behind. Both closed below their 45-day moving averages today. The NASDAQ's fall has not been so steep (yet). It is still testing its 45-day moving average, but it may push lower next week as we are free of any reversal zones until the following week (April 22 - May 3). As with the precious metals, we are looking to buy the bottom of any significant correction, which in this market would likely be a final medium-term cycle bottom. We are still on the sidelines of the broad stock market.
After edging lower all week, crude oil surged up today and tested its high ($87.63 - May contract chart) from last Friday before falling and closing in the lower part of today's range. Last Friday's high was in the center of our reversal zone, so today's high could be a bearish "double-top". If that's the case, we should see prices fall from here as they make their way down to the final medium-term cycle bottom in two to five weeks. We will most likely be looking to buy at that bottom. Right now we remain on the sidelines of crude.
Gold and especially silver prices shot up strongly today but then fell back down and closed near the bottom of today's range (bearish behavior). Gold soared to a new all-time high of $2427 and closed around $2344. Silver made a new three-year high at $29.68 and closed near $27.94. A significant sub-cycle correction could be imminent as today's tops are happening inside a strong potential "pivot point" for both gold and silver that continues into early next week. We'll continue to watch for a strong correction down that may give us another buying opportunity in both metals. We are on the sidelines for now.
We are now two days past our last reversal zone, and the broad stock market continues to push lower. The DOW has been leading the way with a sharp decline, but the S&P 500 is not far behind. Both closed below their 45-day moving averages today. The NASDAQ's fall has not been so steep (yet). It is still testing its 45-day moving average, but it may push lower next week as we are free of any reversal zones until the following week (April 22 - May 3). As with the precious metals, we are looking to buy the bottom of any significant correction, which in this market would likely be a final medium-term cycle bottom. We are still on the sidelines of the broad stock market.
After edging lower all week, crude oil surged up today and tested its high ($87.63 - May contract chart) from last Friday before falling and closing in the lower part of today's range. Last Friday's high was in the center of our reversal zone, so today's high could be a bearish "double-top". If that's the case, we should see prices fall from here as they make their way down to the final medium-term cycle bottom in two to five weeks. We will most likely be looking to buy at that bottom. Right now we remain on the sidelines of crude.
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