BROAD STOCK MARKET and GOLD TRADE ALERTS (10:00 pm EDT)
The broad stock market seems reluctant to rally this week, and it may be rolling over after yesterday's highs in all three indices (DOW, S&P 500, NASDAQ). Next week's strong reversal zone (June 13 - 23) actually begins tomorrow (Friday). I was anticipating a stronger rally into this time window creating a top followed by a significant sub-cycle correction. That may still happen, but the market could also turn down now and make a significant sub-cycle bottom inside the reversal zone. Either way, a strong correction could be imminent, and I'm going to play it safe and sell my long DOW position at tomorrow's market open. I entered a long position in the DOW on May 7 around 41,000, so we should have a small profit on this trade even if it falls tomorrow.
Gold prices remained below $3400 today, but it looks like they are breaking above there on the overnight market. Even though I am still expecting a deeper correction in gold, there is plenty of time for prices to move higher into next week's gold and silver reversal zone (June 16 - 25) to make a new high before resuming a correction. Here too, I am going to play it safe with my short position in gold and unload it while it's still below the price I bought it on April 22.
I am entering an order to sell (unload) my short position in gold at tomorrow's market open. If prices rise sharply into the reversal zone, I may consider selling short again over the next eight trading days. We are still on the sidelines of silver.
Crude oil prices have been rising (and are soaring on tonight's overnight market) due to rising tensions in the Middle East. It looks like a new medium-term cycle in crude began with the deep low of $54.33 (July contract chart) on April 9, and the cycle's trend looks bullish. It is too late to chase this rally, so our strategy now will be to wait for a significant sub-cycle correction to buy. We may get that soon if this current rally pushes a bit higher into the general reversal zone that starts tomorrow (June 13 -23). For now, we are still on the sidelines of crude oil.
The broad stock market seems reluctant to rally this week, and it may be rolling over after yesterday's highs in all three indices (DOW, S&P 500, NASDAQ). Next week's strong reversal zone (June 13 - 23) actually begins tomorrow (Friday). I was anticipating a stronger rally into this time window creating a top followed by a significant sub-cycle correction. That may still happen, but the market could also turn down now and make a significant sub-cycle bottom inside the reversal zone. Either way, a strong correction could be imminent, and I'm going to play it safe and sell my long DOW position at tomorrow's market open. I entered a long position in the DOW on May 7 around 41,000, so we should have a small profit on this trade even if it falls tomorrow.
Gold prices remained below $3400 today, but it looks like they are breaking above there on the overnight market. Even though I am still expecting a deeper correction in gold, there is plenty of time for prices to move higher into next week's gold and silver reversal zone (June 16 - 25) to make a new high before resuming a correction. Here too, I am going to play it safe with my short position in gold and unload it while it's still below the price I bought it on April 22.
I am entering an order to sell (unload) my short position in gold at tomorrow's market open. If prices rise sharply into the reversal zone, I may consider selling short again over the next eight trading days. We are still on the sidelines of silver.
Crude oil prices have been rising (and are soaring on tonight's overnight market) due to rising tensions in the Middle East. It looks like a new medium-term cycle in crude began with the deep low of $54.33 (July contract chart) on April 9, and the cycle's trend looks bullish. It is too late to chase this rally, so our strategy now will be to wait for a significant sub-cycle correction to buy. We may get that soon if this current rally pushes a bit higher into the general reversal zone that starts tomorrow (June 13 -23). For now, we are still on the sidelines of crude oil.
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