BRIEF COMMENTS ON ALL MARKETS (3:30 pm EDT)
The broad stock market, gold, silver, and the U.S. Dollar Index seem to be on track with my predictions from yesterday (i.e. bearish, bearish, bearish, and bullish, respectively). Yesterday's analysis of crude oil's direction was a coin toss, but it looks like we may have missed a buying opportunity as crude prices soared up today to touch $94 (November contract chart) on news of tightening U.S. and global oil supplies. Yesterday's low was most likely the first sub-cycle correction in a new medium-term cycle in crude that started with the low of $77.32 on Aug. 24. This market is very bullish now. We may have to wait until next week for another correction back down and a possible buying opportunity. We'll stay on the sidelines of crude for now.
The broad stock market fell steeply this morning, but all three indices found support and are bouncing back as we near the closing bell. A modest bounce in equities now may give us an opportunity to sell the market short. We will watch for this as we remain on the sidelines for now.
Gold and silver prices are falling again today with gold breaking below its $1885 low from Aug. 21. This turns gold's medium-term cycle officially bearish. Silver hasn't yet broken below its $22.12 low from June 23, so it is still neutral but prices are most likely headed lower. We are still anticipating significant lows in both metals to buy maybe as early as next week, but especially around Oct. 11. We are out of both metals for now.
The U.S. Dollar Index has cleared resistance at 106 and seems to be headed higher. The only thing impeding the dollar now is another resistance line around 108 and possibly our next reversal zone coming up next week (Oct. 5 - 16). That reversal zone may also correspond to a significant bottom in the precious metals.
The broad stock market, gold, silver, and the U.S. Dollar Index seem to be on track with my predictions from yesterday (i.e. bearish, bearish, bearish, and bullish, respectively). Yesterday's analysis of crude oil's direction was a coin toss, but it looks like we may have missed a buying opportunity as crude prices soared up today to touch $94 (November contract chart) on news of tightening U.S. and global oil supplies. Yesterday's low was most likely the first sub-cycle correction in a new medium-term cycle in crude that started with the low of $77.32 on Aug. 24. This market is very bullish now. We may have to wait until next week for another correction back down and a possible buying opportunity. We'll stay on the sidelines of crude for now.
The broad stock market fell steeply this morning, but all three indices found support and are bouncing back as we near the closing bell. A modest bounce in equities now may give us an opportunity to sell the market short. We will watch for this as we remain on the sidelines for now.
Gold and silver prices are falling again today with gold breaking below its $1885 low from Aug. 21. This turns gold's medium-term cycle officially bearish. Silver hasn't yet broken below its $22.12 low from June 23, so it is still neutral but prices are most likely headed lower. We are still anticipating significant lows in both metals to buy maybe as early as next week, but especially around Oct. 11. We are out of both metals for now.
The U.S. Dollar Index has cleared resistance at 106 and seems to be headed higher. The only thing impeding the dollar now is another resistance line around 108 and possibly our next reversal zone coming up next week (Oct. 5 - 16). That reversal zone may also correspond to a significant bottom in the precious metals.
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