MARKETS UPDATE (5:45 pm EST)
There are no changes to our positions this week (still out of all markets).
Please note that if I have any trade alerts for the day I will always attempt to post them by 3:00 pm EST (or well before, if possible) to give active traders time to place trades before the U.S. markets close. If I don't make a blog post by 3:00 pm there are usually no changes in my market positions.
The broad stock market was flat this week and stayed mostly within a narrow range between 15,000 and 15,200. Momentum is still mostly bearish (but not 100%), and other short-term technical indicators are also looking somewhat bearish at the moment. Even though this market is looking bearish, there are no definitive sell signals that would make me want to short it right now, so I am remaining on the sidelines.
Gold and silver were also quiet this week. Gold continued to hover just under $1400 all week while silver remained below $22 (but the spot price closed up today just a hair above that mark). Momentum remains mostly bearish in both of these metals, but there are a few short-term technical and timing indicators right now that suggest a rally may be starting. We will remain on the sidelines for now and watch for a possible momentum change next week.
Worries about war in Syria caused a major shift in the crude oil market today. Prices shot above $98 before closing the day just below that price (around $97.80). This triggered major bullish signals in the crude oil price charts and momentum in crude oil has now switched from bearish to 100% bullish. As mentioned before on the website, tension in the Middle East is always a wild card factor in the price of crude, and this can often upset short selling stategies in this market. Although Syria is not regarded as critical to global oil supplies, an escalating civil war in this country could draw in other more important oil producing countries in the region. Should that happen, today's price spike may not be temporary (as it often is with news reports of potential conflicts in the Middle East). The bullish technical picture now in the crude oil price charts supports this view of an extended conflict. Regardless of this bullish change in direction, I still expect a major cycle correction in oil prices within the next month or two. This new bullish momentum may now drive a strong rally that could peak over the $100 mark before we see that correction. I am going to try and buy this market on any dips next week, but we need to be cautious with this "news driven" rally. It may be safer to just wait and sell short the major cycle correction that is imminent. Still on the sidelines of this market.
There are no changes to our positions this week (still out of all markets).
Please note that if I have any trade alerts for the day I will always attempt to post them by 3:00 pm EST (or well before, if possible) to give active traders time to place trades before the U.S. markets close. If I don't make a blog post by 3:00 pm there are usually no changes in my market positions.
The broad stock market was flat this week and stayed mostly within a narrow range between 15,000 and 15,200. Momentum is still mostly bearish (but not 100%), and other short-term technical indicators are also looking somewhat bearish at the moment. Even though this market is looking bearish, there are no definitive sell signals that would make me want to short it right now, so I am remaining on the sidelines.
Gold and silver were also quiet this week. Gold continued to hover just under $1400 all week while silver remained below $22 (but the spot price closed up today just a hair above that mark). Momentum remains mostly bearish in both of these metals, but there are a few short-term technical and timing indicators right now that suggest a rally may be starting. We will remain on the sidelines for now and watch for a possible momentum change next week.
Worries about war in Syria caused a major shift in the crude oil market today. Prices shot above $98 before closing the day just below that price (around $97.80). This triggered major bullish signals in the crude oil price charts and momentum in crude oil has now switched from bearish to 100% bullish. As mentioned before on the website, tension in the Middle East is always a wild card factor in the price of crude, and this can often upset short selling stategies in this market. Although Syria is not regarded as critical to global oil supplies, an escalating civil war in this country could draw in other more important oil producing countries in the region. Should that happen, today's price spike may not be temporary (as it often is with news reports of potential conflicts in the Middle East). The bullish technical picture now in the crude oil price charts supports this view of an extended conflict. Regardless of this bullish change in direction, I still expect a major cycle correction in oil prices within the next month or two. This new bullish momentum may now drive a strong rally that could peak over the $100 mark before we see that correction. I am going to try and buy this market on any dips next week, but we need to be cautious with this "news driven" rally. It may be safer to just wait and sell short the major cycle correction that is imminent. Still on the sidelines of this market.
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