MARKETS UPDATE (1:30 pm EDST)
There is a good chance we are now seeing the final corrective drop in the current medium-term cycles in the DOW, S&P 500 and NASDAQ to their final cycle bottoms. If this is the case, the drop will be steep and equity markets will continue lower for at least a few more weeks. A break below 25,700 in the DOW, especially after next Monday, would confirm this scenario. We called this correction at the top (Wednesday) so our short position is doing very well. Holding my short position in the broad stock market.
Gold and silver prices seem to be stuck in neutral at the moment with the potential to either rally or take another correction. Both metals made new highs in this week's reversal zone and could still fall to new lows by next Wednesday. That could set up an ideal buying spot. On the other hand, if prices edge up higher into early next week, we could be setting up for a more serious plunge. Let's wait and see how this market moves early next week. On the sidelines of gold and silver for now.
Crude oil may have made a final cycle high on Wednesday at $76.90 (Nov. contract chart), but there is a "wild card" factor influencing crude prices right now that could push them higher. That would be the upcoming sanctions to be imposed on Iran by the Trump administration next month. Mr. Trump does not seem to be backing down on this policy so it would not be surprising to see crude prices higher as we approach November. Crude's current medium-term cycle is near its end so a final top could come at any time now (it may have happened Wednesday), but cycle timing would also allow for higher prices over the next few weeks before a final correction. Let's stay on the sidelines of this market for now.
There is a good chance we are now seeing the final corrective drop in the current medium-term cycles in the DOW, S&P 500 and NASDAQ to their final cycle bottoms. If this is the case, the drop will be steep and equity markets will continue lower for at least a few more weeks. A break below 25,700 in the DOW, especially after next Monday, would confirm this scenario. We called this correction at the top (Wednesday) so our short position is doing very well. Holding my short position in the broad stock market.
Gold and silver prices seem to be stuck in neutral at the moment with the potential to either rally or take another correction. Both metals made new highs in this week's reversal zone and could still fall to new lows by next Wednesday. That could set up an ideal buying spot. On the other hand, if prices edge up higher into early next week, we could be setting up for a more serious plunge. Let's wait and see how this market moves early next week. On the sidelines of gold and silver for now.
Crude oil may have made a final cycle high on Wednesday at $76.90 (Nov. contract chart), but there is a "wild card" factor influencing crude prices right now that could push them higher. That would be the upcoming sanctions to be imposed on Iran by the Trump administration next month. Mr. Trump does not seem to be backing down on this policy so it would not be surprising to see crude prices higher as we approach November. Crude's current medium-term cycle is near its end so a final top could come at any time now (it may have happened Wednesday), but cycle timing would also allow for higher prices over the next few weeks before a final correction. Let's stay on the sidelines of this market for now.
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