MARKETS UPDATE (1:30 pm EDT)
The broad stock market is pausing at 17,800 today (at the time of this writing) and taking a break from its two day fall. If the DOW fails to break below 17,700 tomorrow, we may have to wait another week or two for it to do so (assuming it doesn't break above its all-time high of 18,288 first). As I stated in yesterday's blog, any break below 17,579 would suggest the market is turning bearish. Still on the sidelines.
Despite recent weakness in the U.S. Dollar Index, gold and silver prices seem reluctant to rally this week which is not a good sign for these metals. Not much has changed in the precious metals since my blog on Tuesday. There are still a lot of mixed signals in this market now. It is possible that the price of gold is being manipulated (suppressed) now to prevent or delay a breakdown in the U.S.dollar as a strong rally in gold could trigger panic selling out of the already weak dollar. This might explain the current odd disparity in directional momentum between the two metals with silver being 100% bullish and gold 100% bearish. Out of both gold and silver for now.
In Tuesday's blog on crude oil I wrote: "In my last blog (Friday) I issued a crude trade alert and entered a short position with a stop loss on a close above $60. I am going to raise this stop loss to a close over $61.5 and try to maintain my short position for at least a few more days. There are several technical signals still pointing to an imminent correction in crude, and cycle analysis also strongly suggests a reversal this week." It looks like that correction is starting now. From an intraday high of $62.58 yesterday, crude fell to $58.64 today. My original target for this short-term correction was the $52 area, but prices may find support around $55. Either way, we will be looking to take profits on this trade soon and switch to a long position (unless prices break below $52) as the overall trend in this market is currently bullish. Holding my short position in crude oil for now.
The broad stock market is pausing at 17,800 today (at the time of this writing) and taking a break from its two day fall. If the DOW fails to break below 17,700 tomorrow, we may have to wait another week or two for it to do so (assuming it doesn't break above its all-time high of 18,288 first). As I stated in yesterday's blog, any break below 17,579 would suggest the market is turning bearish. Still on the sidelines.
Despite recent weakness in the U.S. Dollar Index, gold and silver prices seem reluctant to rally this week which is not a good sign for these metals. Not much has changed in the precious metals since my blog on Tuesday. There are still a lot of mixed signals in this market now. It is possible that the price of gold is being manipulated (suppressed) now to prevent or delay a breakdown in the U.S.dollar as a strong rally in gold could trigger panic selling out of the already weak dollar. This might explain the current odd disparity in directional momentum between the two metals with silver being 100% bullish and gold 100% bearish. Out of both gold and silver for now.
In Tuesday's blog on crude oil I wrote: "In my last blog (Friday) I issued a crude trade alert and entered a short position with a stop loss on a close above $60. I am going to raise this stop loss to a close over $61.5 and try to maintain my short position for at least a few more days. There are several technical signals still pointing to an imminent correction in crude, and cycle analysis also strongly suggests a reversal this week." It looks like that correction is starting now. From an intraday high of $62.58 yesterday, crude fell to $58.64 today. My original target for this short-term correction was the $52 area, but prices may find support around $55. Either way, we will be looking to take profits on this trade soon and switch to a long position (unless prices break below $52) as the overall trend in this market is currently bullish. Holding my short position in crude oil for now.
RSS Feed