MARKETS UPDATE (1:30 pm EDT)
I am traveling tomorrow and will not have much time to analyze the markets so I thought I would post a brief update today.
Not much has changed since my last post on Tuesday. The broad stock market is rising just a bit and does not seem to have much enthusiasm for a rally. It is nevertheless buoyant and seems equally unenthusiastic about taking a correction. We are not in a reversal zone (the next one is Oct. 25 - Nov. 6) and we have no intermarket bearish divergence signal this week so it seems our best position right now is on the sidelines.
Gold and silver prices are still rising a bit, but the short-term bearish factors that I mentioned in Tuesday's blog still apply. COT charts are still bearish on the precious metals, and gold is still below $1,300 and silver below $17.47. Next week could be very volatile for these metals. That could mean a sudden break out, but it could also mean another correction down. I am remaining on the sidelines of this market for now.
Crude oil prices rallied strongly Tuesday and Wednesday but are falling sharply today. Unless prices break above the $52.86 high from Sept. 28, we will stick to the idea that this market is falling into a cycle bottom over the next several weeks and possibly into the next reversal zone for crude in the last week of this month. Still on the sidelines of crude oil,
I am traveling tomorrow and will not have much time to analyze the markets so I thought I would post a brief update today.
Not much has changed since my last post on Tuesday. The broad stock market is rising just a bit and does not seem to have much enthusiasm for a rally. It is nevertheless buoyant and seems equally unenthusiastic about taking a correction. We are not in a reversal zone (the next one is Oct. 25 - Nov. 6) and we have no intermarket bearish divergence signal this week so it seems our best position right now is on the sidelines.
Gold and silver prices are still rising a bit, but the short-term bearish factors that I mentioned in Tuesday's blog still apply. COT charts are still bearish on the precious metals, and gold is still below $1,300 and silver below $17.47. Next week could be very volatile for these metals. That could mean a sudden break out, but it could also mean another correction down. I am remaining on the sidelines of this market for now.
Crude oil prices rallied strongly Tuesday and Wednesday but are falling sharply today. Unless prices break above the $52.86 high from Sept. 28, we will stick to the idea that this market is falling into a cycle bottom over the next several weeks and possibly into the next reversal zone for crude in the last week of this month. Still on the sidelines of crude oil,
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