BRIEF MARKETS UPDATE (11:00 pm EDST)
Dovish rhetoric from the Fed last week (i.e. the possibility of an interest rate cut soon) excited the broad stock market enough to rally strongly in spite of lingering China and Mexico "trade war" fears. But we need to note that this rally is rising into a very strong reversal zone (June 7 - 24). A significant top may be imminent and followed by another plunge down. The cycle labeling for this market is a little ambiguous at the moment, and I am without my normal chart data this week-end. I will analyze this (and other markets) in more detail tomorrow (Monday).
Gold and silver also rallied strongly (as the U.S. dollar fell), but they too are overbought and susceptible to a corrective dip now. If that happens into the end of this week, it may give us a good buy spot for both metals.
Crude oil prices hit a deep low ($51.27 - July contract chart) last Wednesday (June 5) and are now rallying strongly off that low. That may have been the medium-term cycle bottom, but there is a very strong reversal zone specifically for crude coming up now (June 7 - 24; same as for equities). It would be a much better fit to the cycle to have the final cycle bottom in this time frame. We will watch for a lower low (or perhaps a double bottom) to buy then.
Dovish rhetoric from the Fed last week (i.e. the possibility of an interest rate cut soon) excited the broad stock market enough to rally strongly in spite of lingering China and Mexico "trade war" fears. But we need to note that this rally is rising into a very strong reversal zone (June 7 - 24). A significant top may be imminent and followed by another plunge down. The cycle labeling for this market is a little ambiguous at the moment, and I am without my normal chart data this week-end. I will analyze this (and other markets) in more detail tomorrow (Monday).
Gold and silver also rallied strongly (as the U.S. dollar fell), but they too are overbought and susceptible to a corrective dip now. If that happens into the end of this week, it may give us a good buy spot for both metals.
Crude oil prices hit a deep low ($51.27 - July contract chart) last Wednesday (June 5) and are now rallying strongly off that low. That may have been the medium-term cycle bottom, but there is a very strong reversal zone specifically for crude coming up now (June 7 - 24; same as for equities). It would be a much better fit to the cycle to have the final cycle bottom in this time frame. We will watch for a lower low (or perhaps a double bottom) to buy then.
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