I have been bullish on Oil and Recently the XLE or OIL & ENERGY stocks. Well, nothing goes up forever, but a pullback can also be a buying opportunity. I saw a fairly strong looking reversal in UCO & USO midday yesterday and wrote in the comments that this could be a temporary topping candle. That doesn't mean I am suddenly bearish on energy stocks now, so let me just discuss UCO & WTIC first, and then I want to also discuss the Miners.
UCO - Due to the gap open and then the selling, we have what is seen as a bearish engulfing. Look where it happened. Usually price dances or crawls around the 200sma as a resistance point, so I expect some sideways movement or a pullback at this resistance area.
WTIC- Look at Oil however. It already rode along the 200sma, and we have seen many reversal candles in Oil along this run, so we may just get a small pullback and even back test the 200sma. We are seeing a 'peak' on day 19 so far, but this CAN peak even higher. The set up remains bullish.
Read MoreLast week I pointed out the differences that I was seeing in the General Markets. For example the SPX, NASDAQ, RUT & IBX , XBI ( LABU) were all acting a bit differently. Let's revisit a few of those charts ...
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SPX - The SPX looks ready to break out higher, but I had mentioned that I felt that the upside is limited, since each prior break out has simply moved up, gone sideways, and then dipped back to the 50sma. I'd still be ready to lock in profits in the near future.
Now let's look at the NASDAQ...
Read MoreMy emails were mostly asking about the Precious Metals and Energy, so that it what I spent my time on.
Read MoreLast week was the week of the September F.O.M.C. Meeting. Let's review how the week played out and ended.
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SPX - We find the SPX on day 23 and that is within the timing that it could start to seek out a daily cycle low. I am pointing out in this chart that recently when the daily cycle has been in the 20's plus count, it has merely gone sideways, so upside may be limited here.
I did notice a few other interesting things with the General Markets however.
Read MoreWhen I was a kid and my mother was making Jello or a Chocolate Pudding or Cake, she would tell me that I should not be impatient. I needed to wait until it was finished 'setting up'. That is where we are in the Precious Metals sector, and also some Energy stocks, so let's take a look at the markets and then that area in particular...
Read MoreF.O.M.C. Volatility, you just can't trust the initial moves out of that 2 p.m. decision , but what is next?
Read MoreToday we have our FOMC meeting, so lets discuss a few things that we will be looking for...
Read MoreStorms can cause a pretty big mess, no doubt about that, but sometimes after the storm, we can appreciate the beauty of the recovery. Right now the Precious metals are selling off, and to many, we have a mess. Will there be beauty after the storm? We will discuss that in todays report...
Read MoreNext week we have the FOMC Meeting, so lets see what the markets have done as we slowly move toward that date with the Fed Decision.
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