MARKETS UPDATE (7:00 pm EST)
The DOW and S&P 500 are clearly falling into the current reversal zone (which ends on Friday) so we should now be watching for a bottom (and subsequent reversal back up) to buy sometime this week. Based on cycle analysis, the ideal areas for these bottoms would be around 19,000 in the DOW and 2,170 in the S&P 500; however, since the general trend of the broad stock market is currently bullish (directional momentum is still nearly 100% bullish for the DOW, S&P 500 and NASDAQ), these indices may not reach those target areas. Timing is more important here. We may enter a long position by the end of the week even if the market remains significantly above those levels. On the other hand, if these indices reverse now and rally strongly into the end of the week, we may consider selling short from new tops (this would be a case of two reversals happening in one reversal zone). My preference is for a low to buy so let's wait and see if these indices can move lower over the next few days. On the sidelines of the broad stock market for now.
We are now in the dead center of a very strong reversal zone for both gold and silver and prices have been rising. Today silver made a new weekly high while gold did not for a case of intermarket bearish divergence which is suggesting an imminent reversal and lower prices. The reason I am not selling short here is because there is still time this week for prices to move higher. Also, both metals are probably in the process of forming significant medium-term and maybe even long-term cycle bottoms soon, which we will want to buy. Silver's bottom may have formed already on Dec.20 (but this is not certain and it could still go lower). Gold's bottom is most likely not in yet. My main strategy now is to wait for these final bottoms to buy. This week and next could be very volatile for the precious metals, and we could see big price moves in both directions. This Friday we will see the December jobs report from the U.S. Labor Department. If this data surprises the markets, we may see turning points in several markets, including gold and silver. If the precious metals continue to rally into Friday, that might give us a spot to sell short for a short-term correction down. Still on the sidelines of gold and silver.
Crude oil prices were up a bit today, but crude still has not made a definitive top or bottom in this current reversal zone (which ends this Friday). The cycle pattern in crude charts is still somewhat confusing and ambiguous. If prices can rally above $55.44 this week, we will consider selling short. If instead they fall below $51, we might have a good spot to buy. On the sidelines of crude oil.
The DOW and S&P 500 are clearly falling into the current reversal zone (which ends on Friday) so we should now be watching for a bottom (and subsequent reversal back up) to buy sometime this week. Based on cycle analysis, the ideal areas for these bottoms would be around 19,000 in the DOW and 2,170 in the S&P 500; however, since the general trend of the broad stock market is currently bullish (directional momentum is still nearly 100% bullish for the DOW, S&P 500 and NASDAQ), these indices may not reach those target areas. Timing is more important here. We may enter a long position by the end of the week even if the market remains significantly above those levels. On the other hand, if these indices reverse now and rally strongly into the end of the week, we may consider selling short from new tops (this would be a case of two reversals happening in one reversal zone). My preference is for a low to buy so let's wait and see if these indices can move lower over the next few days. On the sidelines of the broad stock market for now.
We are now in the dead center of a very strong reversal zone for both gold and silver and prices have been rising. Today silver made a new weekly high while gold did not for a case of intermarket bearish divergence which is suggesting an imminent reversal and lower prices. The reason I am not selling short here is because there is still time this week for prices to move higher. Also, both metals are probably in the process of forming significant medium-term and maybe even long-term cycle bottoms soon, which we will want to buy. Silver's bottom may have formed already on Dec.20 (but this is not certain and it could still go lower). Gold's bottom is most likely not in yet. My main strategy now is to wait for these final bottoms to buy. This week and next could be very volatile for the precious metals, and we could see big price moves in both directions. This Friday we will see the December jobs report from the U.S. Labor Department. If this data surprises the markets, we may see turning points in several markets, including gold and silver. If the precious metals continue to rally into Friday, that might give us a spot to sell short for a short-term correction down. Still on the sidelines of gold and silver.
Crude oil prices were up a bit today, but crude still has not made a definitive top or bottom in this current reversal zone (which ends this Friday). The cycle pattern in crude charts is still somewhat confusing and ambiguous. If prices can rally above $55.44 this week, we will consider selling short. If instead they fall below $51, we might have a good spot to buy. On the sidelines of crude oil.
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