CRUDE OIL TRADE ALERT and BRIEF MARKETS UPDATE (2:45 pm EST)
Today crude oil is breaking below our stop loss price of $53.60 and is making a new low below the low of Dec.16.
Even though a bottom to the current cycle is due and there is a strong chance that bottom could be in anytime by Jan.9, the target price could still be as low as $45 so I think it is prudent to sell our long positions here, stand aside and wait for a confirmed bottom. We entered this long position at $54.47 so we can get out now with a very small loss (about 1.5 %). Selling our long position in crude oil today.
The broad stock market may be topping out now and getting ready to take some sort of correction. If it falls steeply this week, we may see a bottom and a good point to buy sometime next week. If instead this market makes new highs into next week, a correction could start from a top then, and I will consider selling short. This is another holiday week (New Year's Day on Thursday) so the markets will likely be thinly traded. It is probably best to refrain from opening any new trade positions until the following week. On the sidelines of this market.
After rising close to $1200 last Friday, gold is falling today back to the $1180 area. There are still quite a few bearish signals in this market right now so prices could still push lower this week. This Friday or early next week could be a turning point for gold (and silver), so if we see a low then (that stays above $1140), I will consider going long again. On the sidelines of gold and silver for now.
Today crude oil is breaking below our stop loss price of $53.60 and is making a new low below the low of Dec.16.
Even though a bottom to the current cycle is due and there is a strong chance that bottom could be in anytime by Jan.9, the target price could still be as low as $45 so I think it is prudent to sell our long positions here, stand aside and wait for a confirmed bottom. We entered this long position at $54.47 so we can get out now with a very small loss (about 1.5 %). Selling our long position in crude oil today.
The broad stock market may be topping out now and getting ready to take some sort of correction. If it falls steeply this week, we may see a bottom and a good point to buy sometime next week. If instead this market makes new highs into next week, a correction could start from a top then, and I will consider selling short. This is another holiday week (New Year's Day on Thursday) so the markets will likely be thinly traded. It is probably best to refrain from opening any new trade positions until the following week. On the sidelines of this market.
After rising close to $1200 last Friday, gold is falling today back to the $1180 area. There are still quite a few bearish signals in this market right now so prices could still push lower this week. This Friday or early next week could be a turning point for gold (and silver), so if we see a low then (that stays above $1140), I will consider going long again. On the sidelines of gold and silver for now.
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