BRIEF MARKETS UPDATE (11:15 pm EST)
The strength of last week's correction in the broad stock market is challenging the idea of a reversal now to the upside (suggested by our mid-December reversal zone) and is presenting the possibility of the market bypassing a reversal and instead falling steeply for at least 4 more weeks into the end of the current cycle. This seems to be the current pattern that is manifesting in crude oil charts, and, indeed, the steep fall in crude prices may be what is triggering a sell-off in the stock market. Despite these observations, cycle structures and timing signals still point to a reversal now so we will look for a bottom to buy next week, especially if prices can find support around the 17,000 area in the DOW and the 1950 area in the S&P 500. On the sidelines of the broad stock market.
As discussed in last Thursday's blog, it appears that gold and silver are turning bullish so our strategy now is to look to buy any corrective declines that stay above the $1140 area. Gold prices fell all last week and are now at the center of a reversal zone for the precious metals. If prices can find support around $1200 next week, it may be a good spot to go long. On the sidelines of gold and silver.
In Thursday's blog I also discussed how a current overabundance of crude oil supplies and likely price manipulation has been pushing crude prices down in a steady fashion that has distorted or flattened the normal rise and fall of prices that would be characteristic of an unmanipulated free market. It appears that crude prices are headed straight down to the bottom of the current cycle which could be anytime by late January or early February but could also be as early as next week. The price target for this bottom is in the $45 - $55 range. We will watch technical and timing signals carefully in this market for a cycle bottom that will likely be a good spot to buy. On the sidelines of crude oil.
The strength of last week's correction in the broad stock market is challenging the idea of a reversal now to the upside (suggested by our mid-December reversal zone) and is presenting the possibility of the market bypassing a reversal and instead falling steeply for at least 4 more weeks into the end of the current cycle. This seems to be the current pattern that is manifesting in crude oil charts, and, indeed, the steep fall in crude prices may be what is triggering a sell-off in the stock market. Despite these observations, cycle structures and timing signals still point to a reversal now so we will look for a bottom to buy next week, especially if prices can find support around the 17,000 area in the DOW and the 1950 area in the S&P 500. On the sidelines of the broad stock market.
As discussed in last Thursday's blog, it appears that gold and silver are turning bullish so our strategy now is to look to buy any corrective declines that stay above the $1140 area. Gold prices fell all last week and are now at the center of a reversal zone for the precious metals. If prices can find support around $1200 next week, it may be a good spot to go long. On the sidelines of gold and silver.
In Thursday's blog I also discussed how a current overabundance of crude oil supplies and likely price manipulation has been pushing crude prices down in a steady fashion that has distorted or flattened the normal rise and fall of prices that would be characteristic of an unmanipulated free market. It appears that crude prices are headed straight down to the bottom of the current cycle which could be anytime by late January or early February but could also be as early as next week. The price target for this bottom is in the $45 - $55 range. We will watch technical and timing signals carefully in this market for a cycle bottom that will likely be a good spot to buy. On the sidelines of crude oil.
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