UPDATE on the BROAD STOCK MARKET and PRECIOUS METALS (5:30 pm EDST)
The DOW and S&P 500 have been relatively flat this week, but the NASDAQ is rallying. Today the NASDAQ made a new weekly high while the DOW and S&P 500 did not. This gives us a bearish divergence signal and suggests a top could be forming now. If so, we could see the broad stock market fall into next week's strong reversal zone (May 11 - 20) and possibly give us a good spot to buy. If equities push higher into next week, we will instead be looking for a top to possibly sell short for a brief but sharp correction down. Once completed, however, we would be looking to buy the bottom of that correction (as long as it doesn't go too low). We will stay on the sidelines until we can see what pattern is unfolding (top or bottom). At the moment, it looks like it could go either way.
Gold prices fell a bit earlier this week but are rallying today. Silver prices have been edging up since Monday. This market is still giving us mixed signals as we approach next week's strong reversal zone. We are still waiting for a substantial dip to buy in both metals. So far, prices have not gotten down to our ideal targets around $1600 in gold and $14 in silver. That could still happen if these metals push down into next week's reversal to form a bottom. If instead prices rally into next week, we could see a top and then a sharp corrective dip that may end up higher than our target prices. We would still want to buy the bottom of that dip. Let's stay on the sidelines for now.
The DOW and S&P 500 have been relatively flat this week, but the NASDAQ is rallying. Today the NASDAQ made a new weekly high while the DOW and S&P 500 did not. This gives us a bearish divergence signal and suggests a top could be forming now. If so, we could see the broad stock market fall into next week's strong reversal zone (May 11 - 20) and possibly give us a good spot to buy. If equities push higher into next week, we will instead be looking for a top to possibly sell short for a brief but sharp correction down. Once completed, however, we would be looking to buy the bottom of that correction (as long as it doesn't go too low). We will stay on the sidelines until we can see what pattern is unfolding (top or bottom). At the moment, it looks like it could go either way.
Gold prices fell a bit earlier this week but are rallying today. Silver prices have been edging up since Monday. This market is still giving us mixed signals as we approach next week's strong reversal zone. We are still waiting for a substantial dip to buy in both metals. So far, prices have not gotten down to our ideal targets around $1600 in gold and $14 in silver. That could still happen if these metals push down into next week's reversal to form a bottom. If instead prices rally into next week, we could see a top and then a sharp corrective dip that may end up higher than our target prices. We would still want to buy the bottom of that dip. Let's stay on the sidelines for now.
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