BRIEF UPDATE ON OUR TRADE POSITIONS (3:00pm EDST)
The broad stock market is rallying today and seems to be shrugging off (for now) any worries about "trade wars" with China. The DOW is still far from its all-time high of 26,617 so we still have strong bearish divergence against the S&P 500 and NASDAQ which made new all-time highs in August. Today the DOW is making a new monthly high while the S&P 500 and NASDAQ are not (the S&P 500 is close) which gives us more bearish divergence. We are only one day out of our reversal zone and our short DOW position is only about 1% in the red so I am going to hold this short position for at least another day as a top and correction could be imminent. Stay tuned as we may cover this short position over the next few days if we don't see more signs of a reversal. If we do cover, we will be looking to go short again in the next reversal zone coming up Sept. 28 - Oct. 8.
Gold and silver are rallying very weakly as we enter a new reversal zone for the precious metals (Sept. 18 - 27). If this rally doesn't pick up some momentum soon, we could easily see new lows into this new reversal period. That's not so bad if silver dips a bit below last week's low of $13.95 and gold remains above its Aug. 15 low of $1161 (in fact it would be an ideal set-up to buy). The danger here is the possibility of a stronger correction with gold breaking below $1161. Time is on our side as any low is likely due any time over the next seven trading days. I am holding my long positions in gold and silver for now. If silver does make a new low this week, we would like to see gold stay above $1180.
Our crude oil purchase at today's market open was a good buy spot as prices jumped up from yesterday's close before falling back a bit. This gave us an entry price close to our stop loss range of $70 - $71. It still looks like a significant top has formed around $70 so we are holding our short position in crude.
The broad stock market is rallying today and seems to be shrugging off (for now) any worries about "trade wars" with China. The DOW is still far from its all-time high of 26,617 so we still have strong bearish divergence against the S&P 500 and NASDAQ which made new all-time highs in August. Today the DOW is making a new monthly high while the S&P 500 and NASDAQ are not (the S&P 500 is close) which gives us more bearish divergence. We are only one day out of our reversal zone and our short DOW position is only about 1% in the red so I am going to hold this short position for at least another day as a top and correction could be imminent. Stay tuned as we may cover this short position over the next few days if we don't see more signs of a reversal. If we do cover, we will be looking to go short again in the next reversal zone coming up Sept. 28 - Oct. 8.
Gold and silver are rallying very weakly as we enter a new reversal zone for the precious metals (Sept. 18 - 27). If this rally doesn't pick up some momentum soon, we could easily see new lows into this new reversal period. That's not so bad if silver dips a bit below last week's low of $13.95 and gold remains above its Aug. 15 low of $1161 (in fact it would be an ideal set-up to buy). The danger here is the possibility of a stronger correction with gold breaking below $1161. Time is on our side as any low is likely due any time over the next seven trading days. I am holding my long positions in gold and silver for now. If silver does make a new low this week, we would like to see gold stay above $1180.
Our crude oil purchase at today's market open was a good buy spot as prices jumped up from yesterday's close before falling back a bit. This gave us an entry price close to our stop loss range of $70 - $71. It still looks like a significant top has formed around $70 so we are holding our short position in crude.
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