MARKETS UPDATE (11:30 pm EST)
Even though the holidays are ending, it may take another week before market trading volume returns to normal levels. Market volatility this week may continue to be high.
The broad stock market is falling rather steeply into our current timing zone for a reversal so I am going to look for a bottom to buy early in the week. A good buy spot now in the DOW would be in the 17,600 - 17,750 area (which was penetrated last week). For the S&P 500 a good target would be 2020 - 2045. Directional momentum in the DOW, S&P 500 and NASDAQ is now nearly 100% bullish which suggests an imminent rally. If there is a significant breakdown below the above target areas we may have to wait until late January to buy. (This is a less likely scenario, but with market volatility still high anything is possible.) Still on the sidelines here but looking to go long early next week.
Crude oil prices have also been falling and may be ready to turn up next week. We were stopped out of our long position last week due to the possibility of prices dropping to the $45 area. The low so far, however, has only been to $51.40 (achieved today). Their are several technical and cycle factors suggesting that crude could bottom early next week so I am going to watch for a good spot to reenter a long position in this market. There is currently support around $50 so that may be a good place to buy. Out of this market for now but also looking to go long next week.
Gold and silver prices are looking a little ambiguous at the moment. It is possible that both metals made a significant low on Friday and will now rally, but short-term momentum is still a little bearish and prices could go lower early next week. If gold can move down to the $1160 - $1175 area early in the week, it may be an ideal spot to go long. (For silver that spot would be $15.25 - $15.50). I want to point out here that we are still trading the precious metals short-term as it is not clear yet whether or not the long long-term cycle bottoms are in for these metals. On the sidelines of this market.
Even though the holidays are ending, it may take another week before market trading volume returns to normal levels. Market volatility this week may continue to be high.
The broad stock market is falling rather steeply into our current timing zone for a reversal so I am going to look for a bottom to buy early in the week. A good buy spot now in the DOW would be in the 17,600 - 17,750 area (which was penetrated last week). For the S&P 500 a good target would be 2020 - 2045. Directional momentum in the DOW, S&P 500 and NASDAQ is now nearly 100% bullish which suggests an imminent rally. If there is a significant breakdown below the above target areas we may have to wait until late January to buy. (This is a less likely scenario, but with market volatility still high anything is possible.) Still on the sidelines here but looking to go long early next week.
Crude oil prices have also been falling and may be ready to turn up next week. We were stopped out of our long position last week due to the possibility of prices dropping to the $45 area. The low so far, however, has only been to $51.40 (achieved today). Their are several technical and cycle factors suggesting that crude could bottom early next week so I am going to watch for a good spot to reenter a long position in this market. There is currently support around $50 so that may be a good place to buy. Out of this market for now but also looking to go long next week.
Gold and silver prices are looking a little ambiguous at the moment. It is possible that both metals made a significant low on Friday and will now rally, but short-term momentum is still a little bearish and prices could go lower early next week. If gold can move down to the $1160 - $1175 area early in the week, it may be an ideal spot to go long. (For silver that spot would be $15.25 - $15.50). I want to point out here that we are still trading the precious metals short-term as it is not clear yet whether or not the long long-term cycle bottoms are in for these metals. On the sidelines of this market.
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