MARKETS UPDATE (4:05 pm EST)
Gold prices have been mostly flat and silver prices have been rising a bit since Wednesday. It would be normal for prices to oscillate in a narrow range now before making any big move, and this should not concern us unless they break clearly above the strong resistance areas around $1500 in gold and $26 in silver. As I mentioned in an earlier blog, I consider it highly unlikely this resistance will be broken any time soon due to the likely large number of precious metal buyers who entered the market at those levels, took great losses and are now anxiously waiting to sell and break even should the market approach those prices again. Momentum signals in the gold and silver charts are also still strongly bearish at the moment casting further doubt on a breakthrough now. We are thus maintaining our short positions in both gold and silver, but we will keep a watchful eye on those resistance levels as anything seems to be possible in the markets these days.
Both the S&P 500 and the NASDAQ negated their bearish signals early this week, so now these two indices and the DOW are all 100% bullish in terms of their momentum. The broad stock market has been very frustrating to trade recently as it seems to take very few, if any, corrections, even when cycle, timing, and technical analyses point in that direction, so we have not seen any good entry points yet into this market. Note that although it is tempting to just jump in to such a bullish market, this can be dangerous as overdue corrections tend to manifest as abrupt and violent downturns that can catch investors unaware. Still on the sidelines here. I will review my broad stock market strategy over the weekend and post another blog, probably late on Sunday.
On Monday I indicated that we could be seeing the crude oil market turning from bearish to bullish (at least short to medium-term), and today we got the momentum signal that confirms this. This is not surprising considering the strongly bullish sentiment on Wall Street right now, for a strong view of the economy usually leads to a perceived need for more oil and thus higher prices. The industrial commodity copper is also rallying strongly today, but the price of this metal has been in a severe and steady collapse since early February, and it will take more than a day of rallying to reverse the presently dire picture manifesting in the price charts for copper right now. Remember that copper is an important lead indicator of the economy in general, so until the picture for copper improves, we should be cautious about any rallies in oil as well as those in the broad stock market. Still standing aside crude oil but looking to go long now (with caution).
Gold prices have been mostly flat and silver prices have been rising a bit since Wednesday. It would be normal for prices to oscillate in a narrow range now before making any big move, and this should not concern us unless they break clearly above the strong resistance areas around $1500 in gold and $26 in silver. As I mentioned in an earlier blog, I consider it highly unlikely this resistance will be broken any time soon due to the likely large number of precious metal buyers who entered the market at those levels, took great losses and are now anxiously waiting to sell and break even should the market approach those prices again. Momentum signals in the gold and silver charts are also still strongly bearish at the moment casting further doubt on a breakthrough now. We are thus maintaining our short positions in both gold and silver, but we will keep a watchful eye on those resistance levels as anything seems to be possible in the markets these days.
Both the S&P 500 and the NASDAQ negated their bearish signals early this week, so now these two indices and the DOW are all 100% bullish in terms of their momentum. The broad stock market has been very frustrating to trade recently as it seems to take very few, if any, corrections, even when cycle, timing, and technical analyses point in that direction, so we have not seen any good entry points yet into this market. Note that although it is tempting to just jump in to such a bullish market, this can be dangerous as overdue corrections tend to manifest as abrupt and violent downturns that can catch investors unaware. Still on the sidelines here. I will review my broad stock market strategy over the weekend and post another blog, probably late on Sunday.
On Monday I indicated that we could be seeing the crude oil market turning from bearish to bullish (at least short to medium-term), and today we got the momentum signal that confirms this. This is not surprising considering the strongly bullish sentiment on Wall Street right now, for a strong view of the economy usually leads to a perceived need for more oil and thus higher prices. The industrial commodity copper is also rallying strongly today, but the price of this metal has been in a severe and steady collapse since early February, and it will take more than a day of rallying to reverse the presently dire picture manifesting in the price charts for copper right now. Remember that copper is an important lead indicator of the economy in general, so until the picture for copper improves, we should be cautious about any rallies in oil as well as those in the broad stock market. Still standing aside crude oil but looking to go long now (with caution).
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