MARKETS UPDATE (7:30 pm EDST)
The broad stock market has been rallying this week, but not very strongly. None of our three market indices (DOW, S&P 500, and NASDAQ) have reached a good target for a short sell, and tomorrow is the last day of our current reversal zone. If this market pushes significantly higher tomorrow, we still might still do that (sell short - we are looking for the NASDAQ to get to 11,500 or above), but if equities start falling from here, we may have to wait for a bottom to buy in our next reversal zone coming up next week (Sept. 23 - Oct. 2).
The Federal Reserve concluded its monthly meeting at 2:00 pm today and, as expected, left interest rates unchanged (i.e. near zero). Fed Chairman Jerome Powell also stated that rates would likely remain near zero through at least 2023. Normally such dovish rhetoric from the Fed would be cheered by Wall Street, but after the Fed's statement was released, equities fell sharply. Powell also stated that the pandemic-induced economic downturn continues to be a major problem and that a healthy economy won't be possible until business is relatively free of any pandemic restrictions. Perhaps investors realize that, despite herculean efforts from the Fed, the economy is still in a serious slump. Current delays in the second fiscal spending package from Congress to offset COVID losses is also more than likely contributing to pessimism on Wall Street. We will have to wait a few more days as investors digest the Fed's statements to see if these markets want to rally or take a correction. In the meantime, we will remain on the sidelines.
Crude oil seemed unperturbed by the broad stock market's dip, as prices rallied strongly today and closed just above $40 (Oct. contract chart). We may have missed a good buy spot near $36 (especially if the market closes the week above $40), but if the broad stock market starts to fall now, it could pull crude prices back down for another low. We will remain on the sidelines of crude for now.
The precious metals continue to be neutral in their directional trend as prices remain relatively flat (so far) this week. There are still technical indicators suggesting that a strong move either up or down is imminent. Because our current reversal zone ends tomorrow, we may have to wait for the next one (Sept. 23 - Oct. 2) to see a significant top or bottom. Still on the sidelines of gold and silver.
The broad stock market has been rallying this week, but not very strongly. None of our three market indices (DOW, S&P 500, and NASDAQ) have reached a good target for a short sell, and tomorrow is the last day of our current reversal zone. If this market pushes significantly higher tomorrow, we still might still do that (sell short - we are looking for the NASDAQ to get to 11,500 or above), but if equities start falling from here, we may have to wait for a bottom to buy in our next reversal zone coming up next week (Sept. 23 - Oct. 2).
The Federal Reserve concluded its monthly meeting at 2:00 pm today and, as expected, left interest rates unchanged (i.e. near zero). Fed Chairman Jerome Powell also stated that rates would likely remain near zero through at least 2023. Normally such dovish rhetoric from the Fed would be cheered by Wall Street, but after the Fed's statement was released, equities fell sharply. Powell also stated that the pandemic-induced economic downturn continues to be a major problem and that a healthy economy won't be possible until business is relatively free of any pandemic restrictions. Perhaps investors realize that, despite herculean efforts from the Fed, the economy is still in a serious slump. Current delays in the second fiscal spending package from Congress to offset COVID losses is also more than likely contributing to pessimism on Wall Street. We will have to wait a few more days as investors digest the Fed's statements to see if these markets want to rally or take a correction. In the meantime, we will remain on the sidelines.
Crude oil seemed unperturbed by the broad stock market's dip, as prices rallied strongly today and closed just above $40 (Oct. contract chart). We may have missed a good buy spot near $36 (especially if the market closes the week above $40), but if the broad stock market starts to fall now, it could pull crude prices back down for another low. We will remain on the sidelines of crude for now.
The precious metals continue to be neutral in their directional trend as prices remain relatively flat (so far) this week. There are still technical indicators suggesting that a strong move either up or down is imminent. Because our current reversal zone ends tomorrow, we may have to wait for the next one (Sept. 23 - Oct. 2) to see a significant top or bottom. Still on the sidelines of gold and silver.
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