MARKETS UPDATE (2:30 pm EDT)
From a high on Tuesday at 17,172 the DOW pulled back briefly on Wednesday to 16,887 but is rising again and now challenging resistance at 17,200. Wednesday's dip was not a significant reversal, and we are still in the center of a strong reversal zone with this market making new highs so another reversal is still possible, even likely. Though edging higher, the broad stock market is looking "toppy" here so I am going to hold my short position in anticipation of a stronger "dip" which would give us a better spot to cover our short trades and possibly go long. Holding my short position in the broad stock market.
Gold prices surged to a high of $1191 yesterday but are backing down a bit today. If they edge lower into early next week but remain above $1170 I will consider going long. We are already long in silver with a tight stop loss on a close below $16. Prices are testing this level now which could act as support for a strong rally. I want to point out that even though this rally could be strong, it may be short-term as we are still not certain if the longer term cycle bottoms in these metals are in. We are now long in silver but still out of gold.
A strong bear signal appeared in the chart of the U.S. Dollar Index this week as the dollar plunged on Wednesday and dipped slightly below 94. If the dollar continues lower it will help boost a rally in the precious metals. The 93 level is very important support for the dollar right now, and any clear break below there would not be good news (for the dollar, that is. Precious metals would likely soar).
From a high on Tuesday at 17,172 the DOW pulled back briefly on Wednesday to 16,887 but is rising again and now challenging resistance at 17,200. Wednesday's dip was not a significant reversal, and we are still in the center of a strong reversal zone with this market making new highs so another reversal is still possible, even likely. Though edging higher, the broad stock market is looking "toppy" here so I am going to hold my short position in anticipation of a stronger "dip" which would give us a better spot to cover our short trades and possibly go long. Holding my short position in the broad stock market.
Gold prices surged to a high of $1191 yesterday but are backing down a bit today. If they edge lower into early next week but remain above $1170 I will consider going long. We are already long in silver with a tight stop loss on a close below $16. Prices are testing this level now which could act as support for a strong rally. I want to point out that even though this rally could be strong, it may be short-term as we are still not certain if the longer term cycle bottoms in these metals are in. We are now long in silver but still out of gold.
A strong bear signal appeared in the chart of the U.S. Dollar Index this week as the dollar plunged on Wednesday and dipped slightly below 94. If the dollar continues lower it will help boost a rally in the precious metals. The 93 level is very important support for the dollar right now, and any clear break below there would not be good news (for the dollar, that is. Precious metals would likely soar).
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