BRIEF MARKETS UPDATE and HAPPY NEW YEAR WISHES (11:30 pm)
All three broad stock market indices made new all-time highs last week. That negates the bearish divergence signal from the previous week. Nevertheless, a top could have formed last week, or it may form early this week because of last week's holiday. So far, this market looks bullish, so we will still be looking to buy the bottom of any sub-cycle correction (unless it goes too low) when it happens. We are still on the sidelines.
Both gold and silver prices rallied last week with gold getting above its high from the previous week. Silver came close to its previous week's high but did not break it. This is a bearish divergence signal (unless silver breaks that high - $27.28 - this week). Both these markets look bullish right now so I am reluctant to sell short. Let's stay on the sidelines for now.
Last week crude oil prices were relatively flat. They did not make a new top or a new low. Because of last week's holiday, we can extend last week's reversal zone into early this week. We will watch for a new top that could be a turning point for a correction. Like the broad stock market, this market seems bullish, so any corrective low could be a good buy spot. We remain on the sidelines of crude for now.
Over the next few weeks I will try and post some longer-term analysis of these markets for the new year.
All three broad stock market indices made new all-time highs last week. That negates the bearish divergence signal from the previous week. Nevertheless, a top could have formed last week, or it may form early this week because of last week's holiday. So far, this market looks bullish, so we will still be looking to buy the bottom of any sub-cycle correction (unless it goes too low) when it happens. We are still on the sidelines.
Both gold and silver prices rallied last week with gold getting above its high from the previous week. Silver came close to its previous week's high but did not break it. This is a bearish divergence signal (unless silver breaks that high - $27.28 - this week). Both these markets look bullish right now so I am reluctant to sell short. Let's stay on the sidelines for now.
Last week crude oil prices were relatively flat. They did not make a new top or a new low. Because of last week's holiday, we can extend last week's reversal zone into early this week. We will watch for a new top that could be a turning point for a correction. Like the broad stock market, this market seems bullish, so any corrective low could be a good buy spot. We remain on the sidelines of crude for now.
Over the next few weeks I will try and post some longer-term analysis of these markets for the new year.
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